Directive No. 06/2008/CT-NHNN on implementing measures to contribute to promoting production and business activities, circulating goods, preventing economic decline, maintaining economic growth, and ensuring social welfare.

DIRECTIVE

Regarding the implementation of measures to contribute to promoting production and business activities, facilitating commodity circulation, preventing economic decline, maintaining economic growth, and ensuring social welfare.

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Entering the task of developing the economy and society in 2009, the national economy has conditions to maintain economic growth but will face difficulties due to the negative impact of the financial crisis and global economic downturn. To implement Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government on urgent measures to prevent economic decline, maintain economic growth, ensure social welfare, and Directive No. 35/2008/CT-TTg dated December 9, 2008 of the Prime Minister on strengthening the implementation of measures to promote production and business activities, facilitate commodity circulation, stabilize the market, and serve the Lunar New Year 2009, the Governor of the State Bank requests credit organizations as follows:

1. Continue to closely monitor and forecast the impact of the financial crisis and global economic recession on the national economy, money market, and domestic banking activities to proactively implement preventive measures against potential risks according to Directive No. 05/2008/CT-NHNN dated October 9, 2008 of the Governor of the State Bank on certain measures to ensure safety and efficiency in the business operations of credit organizations.

2. Synchronize the implementation of capital mobilization measures; adjust the structure and term of mobilized capital to be consistent with the credit structure and term, ensuring safe business operations; promptly meet the demand for deposit payments, especially during the Lunar New Year 2009.

3. Expand effective credit in accordance with the provisions of the law; apply reasonable lending interest rates under the condition that enterprises and production households are facing difficulties in production and business; promptly address issues related to loan arrears and access to credit for customers, specifically:

a) Evaluate the situation of credit activities in 2008 to implement appropriate plans regarding scale, structure, and speed of credit growth in 2009, consistent with the ability and structure of mobilized capital, following the orientation and target of credit growth set by the State Bank of Vietnam for the economy in 2009; strictly control credit quality.

b) Develop and promptly implement specific credit programs from the beginning of 2009, allocate funds and apply reasonable interest rates according to their customer preference policies for agriculture and rural areas, exports, small and medium-sized enterprises, consumer goods production, production of goods substituting imports, and using domestic raw materials, creating many job opportunities for workers. Provide loans for purchasing rice and grain and other credit programs according to government directives and guidance from the State Bank of Vietnam; allocate sufficient funds to disburse credit contracts signed with major national projects, projects invested according to the government's stimulus investment policy.

c) Implement restructuring of debt repayment terms as stipulated in Decision No. 783/2005/QĐ-NHNN dated May 31, 2005 of the Governor of the State Bank for loans not repaid on time by farming households affected by natural disasters, businesses facing difficulties in selling products and goods, and loans not repaid on time due to the impact of the global financial crisis causing difficulties in production and business, slow sales, and export of products; continue to consider new loans for effective capital needs and ensure repayment capacity; closely cooperate with the Vietnam Development Bank to implement guarantee acceptance and loan provision for small and medium-sized enterprises.

d) Waive or reduce interest on loans according to the Regulation on Lending by Credit Organizations to Customers issued pursuant to Decision No. 1627/2001/QĐ-NHNN dated December 31, 2001 of the Governor of the State Bank.

đ) Provide loans to enterprises engaged in production, storage, and trading of goods to meet market demands before and during the Lunar New Year, particularly essential consumer goods, to prevent shortages and price hikes.

e) Consider adjusting the application of lending interest rates for credit contracts down to the current lending rate; do not impose penalties for overdue loan repayments for small and medium-sized enterprises facing difficulties in production, business, and product sales due to the impact of the global financial crisis.

g) State commercial banks, primarily the Vietnam Agriculture and Rural Development Bank and the People's Credit Fund system, should intensify credit expansion in the agricultural and rural sector; other commercial banks should allocate appropriate proportions of capital to expand credit in the agricultural and rural sector.

4. The Social Policy Bank should actively develop capital mobilization plans according to the current mechanism and submit to competent authorities for additional sources of capital to ensure additional funds for lending to poor households, students, and other policy beneficiaries; review and amend regulations on business practices and lending procedures to facilitate timely access to credit for policy beneficiaries.

5. Strengthen internal inspection and auditing, management of available capital, compliance with the State Bank of Vietnam's regulations on safety ratios in business operations, provisioning and utilization of risk reserves; review, amend, and perfect internal procedures for credit activities, monetary transactions, foreign exchange, payment, fund transfer, and information technology applications in line with legal provisions; assess potential risks in each business process to immediately implement preventive and risk management measures.

6. Accelerate the implementation of bank technology modernization projects to enhance business management capabilities, concentrate on headquarters settlements, and connect the entire system; focus on improving banking services and benefits for customers.

7. Ensure timely and accurate submission of information and reports as required by the State Bank of Vietnam.

8. Implementation:

a) This Directive shall take effect fifteen days from the date of publication in the Official Gazette.

b) The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank, the Governors of the State Bank branches in provinces and centrally governed cities, the Boards of Directors and General Managers (Directors) of credit organizations are responsible for implementing this Directive.

c) The Office shall take the lead, coordinate with relevant Departments to inspect and urge implementation, compile and report to the Governor of the State Bank on the implementation of this Directive./.