Banks Required to Boost Lending for Food Production

In response to the guidance of the Prime Minister, the Governor of the State Bank of Vietnam (SBV) issued Document No. 6368/NHNN-TD dated August 15, 2011 to require commercial banks to boost lending for food production.

 

Governor Nguyen Van Binh requested commercial banks to strictly comply with the Resolution No.11/NQ-CP of the Government and Directive No.01/CT-NHNN of the SBV, promote the credit structure in parallel with improving the credit quality, ensure sufficient capital resources for production and business, and prioritise capital for agricultural production, thus contributing to maintaining and expanding agricultural production to ensure adequate food supply for the market, the balance between food supply and demand, and food price stability.

 

Commercial banks are required to actively balance their capital resources for agriculture, especially livestock facilities with reasonable interest rates; prioritise lending for livestock facilities, effective agricultural production plans and projects, production under the value chain, and production in combination with distribution of food for densely populated areas.

 

The lenders must comply with the regulations on the credit policy for agricultural and rural development in line with Decree No. 41/2010/ND-CP of the Government and the guidelines of Circular No. 14/2010/ TT-NHNN of the SBV.

 

They must have pursue proper policies to regulate and prioritise capital resources for livestock facilities, key areas in need of urgent capital to make investments in order to create food and vegetable production zones and belts together with effective circulation and distribution plans already approved by municipal and provincial People’s Committees;