Interest-free Lending for Rice Stockpiling

The Vietnamese Ministry of Finance has issued the Circular 134/2010/TT-BTC instructing interest subsidy on loans borrowed from commercial banks for purchase and stockpile of rice in the summer-autumn crop in 2010. Accordingly, the State Budget will support 100 % of interest rates born on loans at commercial banks to purchase and stockpile rice in the provided period of time. Interest-subsidised loans are based on quotas given by the Vietnam Food Association.

 

The duration for the purchase and stockpile is from July 15 to September 15, 2010 but the real stockpile will be carried out during the four months from July 15 to November 15, 2010.

 

Prices to be supported with the free-interest loans are the real market price, excluding value added tax. In the case of traders buying rice materials to produce rice products, the prices will include production and processing fees.