Commercial banks in Vietnam have already disbursed more than VND32 trillion in interest-subsidized loans under a government loan subsidy program aimed at reviving an economy growing at the slowest pace in nine years, a recent meeting heard.
The meeting, where Prime Minister Nguyen Tan Dung met with representatives from commercial banks to hear about the deployment of rate support for enterprises borrowing short-term capital, was held on February 14.
The PM requested banks to continue rescheduling payments, to reduce lending rates for enterprises and to consider adjusting qualifications for rate support within this month.
Dung also asked the central bank to solve procedural problems to help enterprises access subsidized capital, stressing that deploying the policy successfully will help the economy.
Among banks that have announced such credits, five banks, including the BIDV, Vietinbank, Agribank and the Mekong Housing Bank, have made VND31 trillion in subsidized loans, mostly for the manufacturing and agricultural production sectors.
Commercial banks, in turn, petitioned to lengthen loan terms, increase the number of enterprises who may enjoy the subsidies and for clear regulations on the responsibility of banks and borrowers.
Banks said they would consider equally between credit employees and enterprises for subsidized loans.
Banks also proposed the Government not to cut the prime rate, saying that current 7 per cent/year was suitable, to issue bonds in U.S. dollar and to continue acting as guarantor for small and medium enterprises borrowing from banks.
Vietnamese commercial banks have so far pledged to lend a combined VND468 trillion, or US$26.8 billion to businesses under the government loan subsidy program. (Vietnam Economic Times)
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