Furthermore, lenders are not allowed to pay cash dividends to their shareholders to focus resources to slash lending rates on current and new loans.
Particularly, the State Bank of Vietnam (SBV) has issued Directive No.02/CT-NHHH on March 31, 2020 on relief measures of the banking sector to blunt and mitigate the economic fallout from the pandemic.
Previously, SBV’s Deputy Governor Dao Minh Tu has asked commercial banks to promptly support customers affected by the COVID-19.
The monetary and fiscal policy of Vietnam includes the following parts: (i) A credit package of VND250 trillion ($10.87 billion); (ii) a fiscal package of VND30 trillion ($1.3 billion); (iii) the lowering of the refinance rate from 6 to 5 per cent and of the discount rate from 4 to 3.5 per cent; as well as (iv) several measures of the Ministry of Finance regarding tax and fee reductions.
The outbreak and subsequent sharp decline in business activity have, in fact, been factored into the SBV’s recent decisions.
– Reporting by Minh Luu, VIR