Dong Nai (VNS/VNA) - Businessesin southern Dong Nai province have called for reducing bank interest rates andrestructuring debt repayment to enable them to resume operations now that theCOVID-19 pandemic is basically under control.

NguyenTrong Tu, Director of Trieu An Production Trading Co, said his businessincurred huge losses during the pandemic last year. After it seemed to be undercontrol, he borrowed money from a bank to renovate his factory, but the fourthwave of COVID had hit his prospects hard, he said.

Strictsocial distancing caused his company to suspend operations for months, causingcustomers to cancel orders, he said.

Sincehe had some money saved, he was able to survive previous waves, but now he hadrun out, he said, adding the risk of going bust would be very high if he couldnot get the loan interest reduced, frozen or rolled over.

Besidesdebt rollover, businesses also want fresh credit to buy raw materials, but saidit was very difficult to get new loans because most of their assets had beenmortgaged already.

Chairmanof the provincial People's Committee Cao Tien Dung said the demands madeby businesses, especially with regard to cash flows to revive production, werevalid and should be addressed.

TheState Bank of Vietnam should consider loosening lending policies further, hesaid.

Accordingto banks, they too have been hit hard by the pandemic since many customers havebeen failing to repay loans.

“Itis very difficult for the banks tosharply reduce loan interest rates at this time.”/.