PM emphasizes Decision 131 as key task of banking sector in 2009

Prime Minister (PM) Nguyen Tan Dung and Senior Deputy Prime Minister Nguyen Sinh Hung on February 14, 2009 met with representatives of the banking sector and relevant ministries. The meeting focused on reviewing the initial results and difficulties in implementing Decision No. 131/TTg-QĐ of the PM dated January 23 in order to effectively use capital resources to support enterprises in their business and production.

The PM spoke highly of the efforts of the State Bank of Vietnam (SBV) and the whole banking sector in promptly and decisively implementing Decision No.131 on assisting and supporting the business and productive corporate and individual borrowers in terms of interest rate. He recalled that one week after the issuance of Circular No. 02/TT-NHNN of the Governor of the State Bank of Vietnam (SBV) on guidelines of interest rate assistance, the state - owned commercial banks have disbursed VND 32,000 billion for support loans.

The PM affirmed that thanks to high responsibility of the whole banking sector, the stimulus policy of the Government has been efficiently implemented. He went on by stressing that this is a principal policy to promote economic growth and maintain business, production and job creation.. He also called upon the banking sector to further this stimulus package in the coming time.

The PM instructed the SBV Governor and the Management Boards of State –Owned Commercial Banks to strictly guide the implementation of loan and interest rate restructuring. The Government Chief asserted that the banking sector played a decisive role in carrying out Decision No. 131 as its key task in 2009. Accordingly, he continued, the banking sector should do its best to facilitate enterprises in getting bank loans in compliance with applicable laws in order to maintain their business and production while creating more jobs for the whole economy.

Referring to the recommendations by various banks on adding up the beneficiaries of the interest rate support plan, the PM assigned SBV to consolidate all the related information and submit it to the PM for specific decision. Additionally, SBV and the Ministry of Finance (MOF) should coordinate to formulate guidelines to best help the beneficiaries of the interest rate support plan.

The Prime Minister and representatives of other ministries really consented to the SBV’s current base interest rate mechanism.

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