Interest rate support policy is specific, facilitating businesses: Deputy Minister of Finance

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Deputy Minister of Finance Nguyen Duc Chi speaks at the conference. Photo: H.D

Deputy Minister of Finance Nguyen Duc Chi reported on the implementation of Decree 31 at the virtual conference on implementing the Government’s Decree 31 on supporting enterprises, cooperatives and business households with 2% interest rate when borrowing capital from commercial banks held by the State Bank of Vietnam (SBV) on the afternoon of July 6.

Deputy Prime Minister Le Minh Khai attended the conference.

The Ministry of Finance has actively coordinated with the SBV and the Government for promulgation of Decree 31 dated May 20 on interest rate support from the state budget for loans of enterprises, cooperatives and business households and Circular 03/2022/TT-NHNN guiding the implementation of Decree 31, said the Deputy Minister.

According to Decree 31, the interest rate support program is worth a maximum VND40,000 billion from the public budget.

The sectors eligible for the 2% interest rate support policy under Decree 31 include aviation, transportation and warehousing; tourism, accommodation and catering services; education - training; agriculture, forestry and fishery; manufacturing and processing industry; software publishing; computer programming and related operations; information service activities, including construction activities directly serving these economic sectors, except construction activities for real estate business purposes.

In addition, projects on construction of social housing, housing for workers, renovation of old apartments, enjoy the 2% interest rate support.

“The implementation of policies on interest rate support shows the State's support for the business community affected by the Covid-19 pandemic. Enterprises have accessed bank capital at low interest rates. This aims to quickly boost economic recovery,” said the Deputy Minister of Finance.

Deputy Minister Nguyen Duc Chi said that the Ministry of Finance coordinated with the SBV and other ministries and agencies to design specific regulations on the process of making estimates, payment and settlement, limiting obstacles, ensuring ensure favorable conditions for commercial banks as well as enterprises, cooperatives and business households.

Accordingly, the SBV will review the plan to support interest rates of commercial banks, ensuring the total amount of VND40,000 billion, and send it to the Ministry of Planning and Investment and the Ministry of Finance. The Ministry of Planning and Investment will base on the plan to report to the Government for submission to the National Assembly Standing Committee for permission for an additional estimate for state budget development investment to implement interest rate support in 2022, and allocate the State budget estimate in 2023 and submit it to the National Assembly for a decision.

Commercial banks must annually make finalization of interest rate support and report to the SBV. The Ministry of Finance will continue to conduct an assessment based on the reports of the SBV and the State Audit.

The Deputy Minister of Finance said that the regulations on 2% interest rate support have additional rules on annual audits and regulations on verification of the State Bank and other agencies.

“This is a key policy, so leaders of the Party, State and Government always encourage and create favorable conditions, ensure the effectiveness of the policy, and support businesses to overcome difficulties. Therefore, commercial banks and borrowers must comply with regulations to ensure discipline, integrity and transparency. Those who intentionally violate will be strictly handled according to the law," said Deputy Minister of Finance Nguyen Duc Chi.