|
Banks lower rates, but for businesses loans are inaccessible
Several banks may have lowered their loan interest rates but businesses complain the loans are only available to select customers.
Ngo Trung Kien, general director of Saigon 2 Garment Company, said though banks announced they would adjust interest rates to help businesses overcome the difficulties caused by the economic downturn, businesses still do not have access to loans.
Banks claim they have to give priority to “longstanding” clients but they decide which customers are longstanding, Kien said, noting some companies do not fall in the category despite having been a client for five years.
Mai Van Sau, chief accountant of Thanh Cong Textile and Garment Company, said only two banks, VietinBank and BIDV, have informed him of lower interest rates.
Despite being a long-standing customer of many domestic and foreign banks, his company faces difficulties getting credit, he said.
Cao Sy Kiem, chairman of the Vietnam Small and Medium Sized Enterprises Association, said 20 percent of the association’s members are struggling because of a cash crunch.
But it does not appear to be easy for so-called longstanding clients either.
Nguyen Thi Anh Hoa, director of Thanh Thao Clothing Company, said her company can apply for credit at several banks where it is listed as a longstanding customer. But the application procedures and conditions are not favorable, she said.
As most businesses had borrowed money before the lending interest rates were lowered, they hardly benefit from the new rates, she added.
Le Dac Son, general director of VPBank, said commercial banks have made little profit, and even suffered losses, and as a result many of them have not cut lending rates.
Nguyen Quoc Sy, deputy general director of Western Bank, said banks want to lower lending interest rates but also have to make sure their deposit interest rates are attractive.
Fearful of losing customers, some banks decided to raise deposit interest rates last week, not long after reducing them.
Many banks said their policies for the rest of this year would be to call in debts and offer new loans only to highly creditworthy customers.
Although liquidity has improved, it can be short lived, they admitted.
Since last month several banks have reduced their lending rates on both the dong and US dollar loans to about 20-20.5 percent and 8 percent respectively.
VNN
|
