SBV requests banks to ensure capital for temporary stockpiling of paddy

SGGP
The Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, on August 10, sent an official dispatch requesting commercial banks to fully and timely meet capital needs and expand the credit limit granted to traders and enterprises so that they have enough capital to purchase paddy for temporary stockpiling and improve the area and quality of warehouses, preservation, and processing of paddy and rice, contributing to minimizing traffic congestion and the current paddy backlog in the Mekong Delta.
Commercial banks should promote reform, simplify internal processes and procedures, shorten loan approval time. At the same time, they should diversify appropriate credit products, proactively work directly with traders and enterprises to have solutions to remove difficulties, and create favorable conditions for enterprises and traders to access capital for the purchase and temporary storage of paddy. The lending must ensure current credit principles, cash flow management, and debt recovery.

Along with that, banks continue to deploy solutions to remove difficulties for customers, including traders, enterprises, and rice producers and traders, affected by the Covid-19 pandemic, such as restructuring the repayment term, keeping the debt group unchanged, exempting and reducing interest, and fees, and lending new loans to restore production and business.

The Governor of the SBV also requested its branches in provinces and cities in the Mekong Delta to direct the branches of commercial banks in the area to implement the above instructions, closely monitor developments, market situation, and loans given to purchase and temporarily store paddy by local commercial banks to promptly report to the People's Committees of provinces and cities and the Governor on solutions to overcome difficulties and obstacles in the implementation process.

By Ha My – Translated by Thanh Nha

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