On December 26, 2018, the State Bank of Vietnam (SBV) organized a video conference on the implementation of Decree No. 116/2018/ND-CP of the Government on credit policies for agricultural and rural development and the banking sector’s measures of controlling “black credits”. The conference was chaired by SBV Deputy Governor Dao Minh Tu.
Also attending the conference were representatives from the relevant ministries, agencies, the SBV branches…
In his opening speech, Deputy Governor Dao Minh Tu stated that agriculture and rural areas play a key role in the socio-economic development. For the banking industry, this is also a potential field which is prioritized for credit funds, with the participation of about 70 commercial banks, foreign bank branches, and more than 1,100 people's credit funds and Vietnam Bank for Social Policies. The loan outstanding for this sector has reached nearly VND 1,690 trillion, accounting for 24% of the total loan outstanding of the economy.
Deputy Governor Dao Minh Tu speaks at the Conference
In order to further promote credit investments in the agriculture and rural sector, the SBV recently advised the Government to issue Decree No.116/2018/ND-CP amending and supplementing Decree No. 55/2015/ND-CP with many incentives, such as raising the loan amount without a collateral to twice as much as the current amount for several subjects of individuals and households; incentive policies for the development of agricultural production in linkages, agricultural production applying high technology, policies on addressing the risks for customers facing difficulties due to objective causes, force majeures…
Speaking at the conference, the representative from the Ministry of Public Security informed about the situations and how to identify “black credits” the difficulties in the management and battle against the complicated developments of “black credits” activities over the past time, as well as the solutions to prevent these activities.
For the banking industry, over the past time, the whole sector has implemented many drastic measures to increase the ability to access credit capital for production and business operations. Besides, the banking sector is also actively coordinating with the Ministry of Public Security, other relevant ministries and agencies to prevent and deter “black credits” strengthening coordination with the local authorities to provide information and communication on the policies and the laws on banking activities, the legal regulations against the crimes in the banking field and “black credits” participating in detecting, preventing and promptly handling with “black credits”-related cases.
Also at the Conference, the commercial banks, financial institutions and micro-finance institutions reported on the actual implementation of their credit products as well as their solutions to increase accessibility to capital for individuals and businesses, thereby contributing to deterring “black credit”.
In the coming time, the banking sector is committed to further cooperating and drastically conducting the measures of promoting credit investments effectively to support the agricultural production and meeting the people’s demands for capital in the rural areas, contributing to controlling “black credit” activities. The measures include: continuing to direct the credit institutions to expand credits and prioritize loan capital for agriculture and rural areas; promptly implementing solutions to remove the difficulties in accessing bank loans; strengthening the coordination with the ministries and agencies in order to continue the effective implementation of the specific credit programs in the agricultural sector; accelerating the administrative reforms, simplifying the borrowing procedures to improve accessibility to loans for individuals as well as businesses in the agriculture and rural areas; further coordinating with the local authorities, the socio-political organizations such as the Fatherland Front, the Farmer's Association, the Women's Union, etc. in enhancing the communication and dissemination on credit policies and transferring capital to the farmers in the most effective way.
The SBV Deputy Governor stressed that in order to prevent and deter “black credits”, in addition to the solutions and coordination policies of the banking sector, the whole political system also needs to conduct comprehensive, consistent, strict and drastic measures.
Le Hang