Vietnam Central Bank To Offer Loan Restructuring Plans For Businesses

As part of its efforts to shore up a faltering economy, Vietnam's central bank announced it may restructure loans for some businesses facing difficulties, including deferring loan repayments.

Prime Minister Pham Minh Chinh has ordered the State Bank of Vietnam to amend the decision in order to increase the number of enterprises subject to restructuring and to extend the term over which it occurs, according to a government statement issued over the weekend.

Several enterprises in Vietnam, a regional manufacturing hub, have struggled as global demand has weakened, with exports declining 11.9 percent in the first quarter of this year.

Vietnam's economic growth dropped to 3.32 percent from January to March, down from 5.92 percent year on year in the fourth quarter of 2022.

Chinh also asked commercial banks to lower lending interest rates to help firms and people during a weekend meeting with the central bank.

The central bank slashed multiple policy rates last month to stimulate growth in the face of global uncertainty.