More Vietnamese commercial banks have entered a race to provide 4 per cent interest rate loan subsidies to export enterprises in order to stimulate investment, production and business, local media reported.
Late last week, the Vietnam Technological and Commercial Joint Stock Bank (Techcombank), 20 per cent-owned by HSBC Holdings Plc, announced it will lend VND50 trillion at subsidized interest rates of as low as 5 per cent.
The lending would “remove difficulties” in funding, especially for small- and medium-sized enterprises, Deputy General Director Luu Thi Ai Xuan said.
The Vietnam International Bank (VIB) on February 7 said that it will provide VND25 trillion (US$1.4 billion) in loan subsidies with the highest interest rate of 4 per cent to export businesses.
Exporters who take out loans under the program, “Export financing in dong with extremely preferential interest rates” launched by the bank, will enjoy the lowest lending rate of only 1 per cent a year. Loans in foreign currencies will be offered to customers at rates between 3-3.5 per cent.
The Hanoi-based bank also decided to use VND800 billion (US$45.9 million) as loan subsidies to coffee exporters.
On the same day, LienVietBank also announced that it has issued its own guidelines on offering 4 per cent loan subsidies to companies in accordance with the State Bank’s policy.
LienVietBank will give subsidies to short-term loans in dong under credit contracts (less than 12 months) signed between February 1 and December 31, 2009.
In the fourth quarter of 2008, the Lien Viet Bank launched a program in which VND4 trillion was set aside for loans to small and medium size businesses. Till now, more than VND1 trillion has been allocated.
The Vietnamese government plans to use VND17 trillion (US$1 billion) from a stimulus package to subsidize loans after the economy expanded at the slowest pace since 1999. Banks may lend at a maximum of 10.5 per cent at present. (Labor)
Vietnamese
