MORE MONETARY EASING MEASURES FORECAST IN 2020
The SBV cut its benchmark interest rates by 50 basis points on May 12. Accordingly, the refinancing rate was reduced to 4.5 per cent from 5.0 per cent, discount rate to 3.0 per cent from 3.5 per cent, and the overnight inter-bank lending rate to 5.5 per cent, from 6.0 per cent with effect from May 13.
BANKS SKEPTICAL OF BOT TRANSPORT PROJECT RELIEF
“It is difficult to restructure the debt repayment period as banks are not ready and are concerned about risks. BOT transport is not a priority for them,” Le Duc Khanh, director of the market strategy department at PetroVietnam Securities, told VIR. “However, powerful state-run banks would have to follow a government order.”
MORE RATE CUT TO STIMULATE DEMAND
According to the State Bank of Vietnam (SBV), banks are actively offering new soft loan packages to customers. The combined value of this credit package has to date reached VND650 trillion (US$28 billion) with lending rates 1-2% lower than those before the Covid-19 pandemic outbreak. 147,637 customers have borrowed VND553 trillion (US$23.6) since January 23, 2020.
RETROACTIVE TAX ALTERATIONS TO BUFFER CASH FLOW FOR BUSINESSES
The forthcoming tax amendment on interest expense cap is slated to be beneficial for 1,000 companies adopting parent-subsidiary business models, with reimbursement worth nearly VND5 trillion ($217.4 million).
CREDIT DECLINES IN FIRST HALF OF APRIL DUE TO COVID-19 PANDEMIC
The SBV said credit demand from firms involved in industry, construction and agriculture had increased by 1 per cent and 0.3 per cent, respectively, while the figures had declined for trade, services, tourism and consumption. Credit demand from small- and medium-sized enterprises (SMEs) also decreased by more than 1 per cent.
COMMERCIAL BANKS CUT PROFIT TARGET AMID COVID-19 PANDEMIC
Many banks in Vietnam have reduced their profit target for 2020, and plan to support companies severely impacted by the COVID-19 pandemic.
ELECTRONIC FUND TRANSFER FEES TO BE CUT BY AT LEAST 50 PER CENT
The State Bank of Việt Nam on Tuesday issued a directive to reduce the fees for transactions via interbank electronic payment system by 50 per cent for local banks.
MINISTRY MAKES INT’L ACCOUNTING RULES COMPULSORY AFTER 2025
The Ministry of Finance on Monday issued a decision regulating the roadmap for the application of International Financial Reporting Standards (IFRS), replacing the current Vietnamese accounting standards (VAS).
