The first condition is that an employee who is participating in social insurance is required to stop working for one consecutive month or more during the period from April 1, 2020 to the end of December 31, 2020.
This criterion replaces the previous condition, “20% or more of the employees who are participating in social insurance must stop working for one consecutive month or more; has paid at least 50% of the stop salary for the employee”.
The review criteria “financial difficulties, not balancing enough sources to pay salaries, having used up the salary provision fund” have also been replaced more specifically.
Accordingly, enterprises whose revenue in the first quarter of 2020 decreased by 20% or more compared to the fourth quarter of 2019, or the adjacent quarter’s revenue before the time of consideration for the consideration period decreased by 20% or more over the same period in 2019.
The 16,000 billion VND loan package has a specific legal corridor after the State Bank issued Circular 05, based on Resolution No. 42 and Decision No. 15/2020 of the Prime Minister, to provide refinancing loans to VBSP. With 0% interest rate to pay salary for employees in the complicated situation of Covid-19 epidemic, many enterprises do not guarantee continuous operation, even no revenue due to loss of orders.
However, according to previous businesses, disbursement conditions for this 16,000 billion VND support loan package are too difficult for businesses to access. For example, the condition “has paid at least 50% of stop wages to employees”. In addition to inappropriate policy design, cumbersome procedures, while the loan benefits are not really much, businesses feel tired.
Earlier, at the State Bank press conference in September, information showed that there was only one decision to approve a loan under this policy, but then the company did not borrow anymore because it was able to balance the main.
The report at the end of September of the State Bank also showed that VBSP has extended debt for more than 162,000 customers with a loan balance of about VND 4,067 billion, adjusted the repayment term for more than 75,200 customers with a loan balance of nearly VND 1,600 billion providing new loans to more than 1.4 million customers with outstanding loans of over 55,000 billion VND.
Source: vietnamfinance.vn – Translated by fintel.vn