The State Bank of Vietnam has issued Official Letter No. 7881/NHNN-TD, urging commercial banks to drastically implement lending solutions and create conditions to meet oil wholesalers’ capital needs.

The document clearly states that oil is a strategic and important commodity that directly affects macroeconomic stability and production, as well as the daily lives of businesses and people. Since the beginning of 2022, the Landesbank has issued many orders for credit and foreign exchange work for the mineral oil business.

In connection with the complicated developments in the world oil market, the unstable supply and the large and frequent price fluctuations, the government and the Prime Minister have set tasks and solutions to ensure the supply and not run out of gasoline for the domestic market.

According to the Prime Minister’s instruction in the Official Message No. 1039/CD-TTg dated November 2, 2022 on the management and administration of petroleum products, the Governor of the State Bank of Vietnam urged commercial banks to implement 4 solutions as a matter of urgency:

one iscontinue to drastically implement solutions outlined by the Governor of the State Bank in Official Notice No. 1509/NHNN-TD dated March 15, 2022 regarding the provision of credit to leading petroleum trading companies in accordance with the current Lending Principles and Regulations of the Act.

two isProactively balance sources of capital to promptly and fully meet the credit needs of major petroleum companies (according to the list published on the Ministry of Industry and Trade website), to service domestic petroleum purchases, and to import gasoline and oil in accordance with the allocation import quotas to to ensure the supply of the domestic market with petrol and oil, to avoid bottlenecks, to not allow greed for profit and violations of the law.

three is, CEO/General Manager of Commercial Banks, closely managed the whole system; Strengthen leadership, inspection and supervision and respond in a timely manner to the borrowing capital needs of major petroleum trading companies that fully comply with the prescribed conditions; Deal strictly with cases of violations and irresponsibility that result in delays in loan processing.

four is, to report monthly to the State Bank on the situation of lending to oil trading and importing companies. If problems arise during the implementation, they immediately report them to the governor of the state bank for examination and processing.