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Central bank pledges $2b in soft loans

Update: February, 18/2014 - 09:31
The HCM City branch of the State Bank of Viet Nam will offer enterprises low-interest loans from a fund totalling VND40 trillion (US$1.89 billion) approved by the central bank.— Photo vinacorp

HCM CITY (VNS)  — The HCM City branch of the State Bank of Viet Nam will offer enterprises low-interest loans from a fund totalling VND40 trillion (US$1.89 billion) approved by the central bank.

Deputy Governor Nguyen Phuoc Thanh told a recent meeting between the municipal People's Committee with the local banking sector that the fund would be disbursed under a programme that links local banks and enterprises.

All the city-based banks would be encouraged to participate in the scheme.

"The programme will continue to focus on preferential loans to enterprises involved in prioritised sectors, with priority given to those that want to upgrade production technology and equipment or apply high technology, or are involved in support industries," Thanh said.

"This year, the programme will create conditions for more customers to get access to preferential loans with the interest rate of less than 9 per cent per year.

"They may include small traders, students, households and those involved in other economic sectors," he said.

Committee vice chairwoman Nguyen Thi Hong said that, since the beginning of the year, many commercial banks had registered to participate in the programme, an indication that they were ready to offer loans to local enterprises to help them settle difficulties.

To Duy Lam, director of the SBV branch in HCM City, said under the programme the banks in the city to date have provided preferential loans worth VND130 trillion (US$6.16 billion) to enterprises in prioritised sectors, up by 3.2 per cent compared to the figure recorded in late 2012.

Of the figure, VND80.9 trillion was given to small- and medium-sized enterprises, up 1.7 per cent, while preferential loans worth VND22.4 trillion were offered to rural and agricultural development purposes, up 7.4 per cent.

Export enterprises were lent VND19.4 trillion, up 5.8 per cent. About VND7.14 trillion was given to enterprises involved in the support industry, Lam said.

"So far this year, the branch has received a list of 203 enterprises that want to get loans that are valued at a total of VND3.5 trillion under the programme, of which 149 have already received a total of VND3.1 trillion in loans. The agency is processing the remaining cases," he said.

Hong of the People's Committee said the loans had significantly helped enterprises further develop production and business activities, and banks improve credit growth. —VNS

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