More Banks Announce Interest-Subsidized Loan Programs

Vietinbank and Sacombank on February 9 became the latest financial institutions to offer loans with interest rates subsidized by the Government as a measure to support export and manufacturing enterprises amid current economic slowdown.

 

Vietinbank’s Chairman Pham Huy Hung announced on February 9 that it would allocate about VND100 trillion (US$5.74 billion) to loans for eligible borrowers at just 4 per cent per year.

 

Meanwhile, Sacombank said it would allocate VND25 trillion-VND30 trillion (US$1.4 billion-US$1.7 billion) to its interest-subsidy program. Subsidized interest rates for qualified exporters would range from 1.5 per cent to 2 per cent per year, and would start at 4.8 per cent per year for other borrowers.

Late last week, the Vietnam Technological and Commercial Joint Stock Bank (Techcombank), with a 20 per cent stake owned by HSBC Holdings Plc, revealed a plan to lend VND50 trillion at subsidized interest rates of as low as 5 per cent.

 

"The bank will try its best to help enterprises quickly access the subsidized loans," said Luu Thi Anh Xuan, deputy head of corporate customers at Techcombank.

 

Management officials at all of these banks have expressed their commitment to ensuring the transparency and effectiveness of their banks' lending. Many said their institutions had set up special teams and procedures to monitor borrowers and ensure that loans are being used for the purposes stated in loan applications.

 

The Vietnamese government plans to use VND17 trillion (US$1 billion) from a stimulus package to subsidize loans interest rates to boost the economy. Banks may lend at a maximum of 10.5 per cent at present. (Vietnam & World Economy, Labor)