Bac Ninh businesses propose post-epidemic support

Interest rate reduction, debt rescheduling, land rent and electricity support are the proposals of small and medium enterprises in Bac Ninh, on the morning of October 13.

The meeting on the morning of October 13 was the second time that Bac Ninh had a dialogue to remove difficulties for businesses after the Covid-19 epidemic.

Mr. Luong Ngoc Toan, Vice Chairman of Bac Ninh Small and Medium Enterprise Association, shared that businesses want the bank to agree on a general interest rate reduction from 1-1.5% and support for debt rescheduling applied equally to all. both eligible borrowers and borrowers from the same credit provider.

Mr. Luong Ngoc Toan said during the conversation. Photo: Gia Chinh

In addition, for medium and long-term loans, he proposed to extend the repayment period until the end of 2021. old debts, creating conditions for enterprises to borrow new loans for production and business investment and loosening lending conditions and more preferential interest rates.

Responding to the above proposal, Mr. Nguyen Nhu Don, Director of the State Bank of Bac Ninh, said that businesses themselves would be disadvantaged. When applying a common interest rate, banks will choose the lowest floor like 0.5-1% reduction, not 2% as at present.

Regarding debt restructuring and debt rescheduling, a representative of the State Bank of Bac Ninh province expressed concern that if it were to be implemented, how would businesses pay at the end of the period when falling into debt because this is “the original version of this policy?” quality is bad debt”.

Mr. Nguyen Nhu Don answered business.  Photo: Gia Chinh

Mr. Nguyen Nhu Don answered business. Photo: Gia Chinh

Regarding interest rate reduction, Mr. Nguyen Nhu Don said that under the authority of the Government, the State Bank could not intervene but only played a calling role. “In fact, businesses and banks have to grow together because if the business dies, the bank can’t live,” said Don, and that businesses and banks should work together to overcome the pandemic.

Debating more on the topic of capital, Mr. Nguyen Nhan Phuong, Chairman of Bac Ninh Small and Medium Enterprises Association, said that in fact, many commercial banks cut interest rates very little, only 0.5%, leading to many businesses. business is unable to pay the debt. “Debt rescheduling helps businesses have more capital to secure their business, even delay repayment to maintain production,” said Phuong.

Mr. Nguyen Dinh Tan (Association of Small and Medium-sized Enterprises in Bac Ninh City) asked the Provincial People’s Committee to allow a 30% reduction in land use fees payable in 2021 for manufacturing enterprises, a 50% reduction of land use fees for businesses operating in the field of trade and services, especially restaurant, hotel and accommodation services.

Mr. Ngo Xuan Tong, Director of Bac Ninh Tax Department, said that tax exemption and reduction policies to support businesses affected by the Covid-19 epidemic in 2021 have been expanded compared to 2020 in terms of subjects as well as reductions, businesses. Businesses can apply for support.

Mr. Ngo Xuan Tong answered the business.  Photo: Gia Chinh

Mr. Ngo Xuan Tong answered the business. Photo: Gia Chinh

Regarding the proposal to increase the reduction rate of the group of trade and service industries, Mr. Tong said that it was under the Government’s authority. “If the Provincial People’s Committee finds it reasonable, it can propose to the Government to change,” Mr. Tong added.

Mr. Kieu Dinh Huong, Que Vo District Business Association suggested continuing to reduce electricity prices and adjust peak hours from 10 am to 12 pm. Because the time from 7-10 am is the time when businesses are stable and have stable production. The highest productivity in the electricity industry increases electricity prices, increasing costs and increasing production costs of enterprises.

Responding to the above petition, the representative of EVN Bac Ninh said that the increase in electricity prices at this time was not for the purpose of collecting more electricity bills but to reduce the pressure on the system. “This time frame has many activities at the same time, leading to the power system being overloaded, we make such a regulation for the purpose of letting businesses switch to other production time frames,” he said.

Mr. Ngo Tan Phuong, Vice President of Bac Ninh province, said that in the difficult context after the epidemic, businesses and banks should sit together to find a common voice and maintain production. “The opinions in the province’s jurisdiction will be resolved immediately, the comments that need higher levels will be considered and submitted by the province,” Mr. Phuong concluded.

Gia Chinh