Vietnam Biggest Bank to Lend up to VND165 Tln to Boost Demand
Vietnam’s biggest state-owned bank by assets-the Bank for Agriculture and Rural Development of Vietnam (Agribank) has announced to pump up to VND165 trillion (US$9.763 billion) into 2,200 outlets and branches across Vietnam to boost demand.
With the funds, Agribank will take the lead among local banks which will provide VND420 trillion under the 4 per cent interest rate subsidy by the government to boost economy amid the global economic downturn.
The bank said that it will focus on lending to institutional clients, families, and individuals to maintain production activities from February 1 till the end of this year.
Agribank is followed by Vietinbank with VND100 trillion, BIDV with VND68 trillion, Techcombank with VND50 trillion, ACB with VND35 trillion and Sacombank with VND25 trillion to VND30 trillion.
However, local businesses are concerned about product sales as the global economic downturn is worsening; therefore they are reluctant to borrow loans from banks.
The government of Vietnam is fully aware of that issue and is trying its best to streamline procedures to boost disbursements and see corruption as a real threat to its economic stimulus measures.
According to GSO, in January, industrial production and exports, two drivers of the country’s GDP value, were down 4.4 per cent and 24.2 per cent on year. (Vietnam Economic Times, VietnamNet)
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