|
SBV: Businesses won’t be forced to sell dollars
The State Bank of Vietnam (SBV) will not force any enterprises, either foreign-invested or domestic, to sell foreign currencies to commercial banks, Deputy Governor of SBV Nguyen Van Binh affirmed.
The deputy governor stated the above during the Vietnam Business Forum in HCM City yesterday on the threshold of the mid-year Consultative Group Meeting.
Binh’s words were the official answer to the proposal by foreign-invested enterprises that the government not force businesses to sell foreign currencies to banks.
Prior to that, local newspapers reported suggestions by some economists that the government set up a regulation on forcing enterprises with foreign currencies to sell them to commercial banks in order to help settle the foreign currency supply shortage. However, right after the suggestion was made, export companies and other economists voiced strong opposition, saying that the foreign currency shortage should be settled by measures other than administrative orders.
Replying to a proposal on applying ‘flexible’ policies on goods price quotations in order to help enterprises minimise losses due to exchange rate fluctuations, Binh said that no exceptions would be allowed in price quotations, affirming that in Vietnamese territory, the prices of all goods must be quoted in VND.
Binh added that SBV will promulgate 14 circulars guiding the implementation of Decree 160 on the implementation of the Foreign Currency Management Ordinance.
Ceiling interest rate regulation to be amended
Ashok Sud, Chairman of the Banking Group under the Vietnam Business Forum, said that the ceiling interest rate scheme has been influencing both domestic and foreign banks. The gap between the basic interest rate announced by the State Bank of Vietnam and the ceiling interest rate is just 3.5 percent, which proves to be too narrow to bring profit to banks.
However, he thinks that it will take time to lobby for the amendment of the provision on the ceiling interest rate in the Civil Code. Therefore, commercial banks want the State Bank to apply a flexible solution. Currently, a flexible solution is applied to consumer loaning, under which banks’ loan interest rates for this kind of credit are not limited, but negotiated.
Binh said that the ceiling interest rate scheme played a big role in curbing inflation in 2008 and the first months of 2009. This helped lower the lending interest rate, creating favourable conditions for businesses to access bank loans. However, Binh admitted that SBV itself finds it unsuitable to the operation of credit institutions in the long term.
Answer on foreign ownership ratio increase to be given soon
When foreign investors will be able to increase their ownership ratio in Vietnamese banks was also a question of great interest at the business forum.
Under the current regulations, foreign-invested enterprises are allowed to hold no more than 30 percent of stakes of a commercial bank, and one strategic shareholder is not allowed to hold more than 20 percent of stakes of a bank. SBV said that all these regulations fit with multilateral and bilateral commitments Vietnam has signed.
However, it proves to be necessary to reconsider the ratios in the current circumstances. The central bank has stipulated that by the end of the fiscal year 2010, banks must have the minimum capital of 3,000 billion dong, and it will reconsider the ratios in order to support commercial banks. SBV will soon submit a draft plan on changing the ceiling foreign ownership ratio in Vietnamese banks.
Deputy Governor Binh said that he finds the proposal by the Banking Working Group that it be allowed to participate in the compilation of the Law on Credit Institutions a reasonable suggestion.
“We will find a reasonable mechanism which allows the working group to join the compilation, directly and flexibly,” Binh said.
VietNamNet, DTCK
|
