SBV asks commercial banks to support fuel traders | Company
Hanoi (VNS/VNA) – The State Bank of Vietnam (SBV) issued a document ordering commercial banks take all measures to support
SBV underlined the importance of fuel as key product with a direct and significant influence on the country’s macro-economic stability and people’s daily lives, the document says.
Since the beginning of the year, SBV has been working closely with commercial banks to extend lines of credit to fuel traders and provide them with favorable exchange rates.
As the global oil price continued to be volatile and the market faced supply disruptions, the government of Vietnam made it a priority to ensure stable supply for the domestic market.
The central bank needed to implement financial support policies to best support fuel traders in accordance with the regulations. Traders have been advised to stay in close contact with commercial banks to plan ahead for their financial needs.
Meanwhile, banks were to conduct comprehensive reviews to stay on top of the situation in a bid to streamline the process to ensure merchants’ financial needs are met in a timely manner.
The central bank is awaiting monthly reports from commercial banks on how and when they plan to support traders, including retailers and importers who have been encouraged to report to the SBV if they encounter any problems or delays.
In a discussion at the National Assembly, Industry and Trade Minister Nguyen Hong Dien said central bank support should play a crucial role in boosting the financial capacity of traders and the economy. alleviation of the current fuel shortage across the country.
The National Assembly (NA) tasked Dien and his ministry with coming up with a plan to establish a stable fuel supply and efficiently operate the country’s fuel network.
Early last month, Finance Minister Ho Duc Phoc proposed giving the Ministry of Industry and Trade (MoIT) full power to adjust fuel prices, instead of the current joint authority between the MoIT and the Ministry of Finance. Phoc said this would help streamline procedures and increase fuel management efficiency.
Some industry experts have voiced support for the minister’s proposal, saying it could end the recent backlash between the two departments. Furthermore, the MoIT, which currently oversees fuel trading and retailing activities, was in a much better position to propose a price adjustment mechanism that balances the rights and benefits of traders and consumers.
“The proposal reduces the workload of the Ministry of Finance. Besides, it makes sense that the ministries responsible for adjusting the prices of certain commodities,” said NA MP Tran Van Lam, a member of the committee. finance and budget of the NA.
A number of petrol stations have closed in recent weeks, with traders citing numerous difficulties in securing inventory and suffering heavy financial losses since the start of the year./.