Pilot Agricultural Development Lending

To implement the Government’s Resolution 14/NQ-CP dated March 5, 2014, the Governor of the State Bank of Vietnam (SBV) issued the Decision 1050/QD-NHNN dated May 28, 2014 on regulations on pilot lending for linked models of agricultural production and consumption chains, models of scientific and technological application in agricultural production.

 

Beneficiaries are enterprises signing agreements on joining into agricultural production and processing chains; enterprises certified high-tech applying agricultural companies by the Ministry of Agriculture and Rural Development; farmers and farming cooperatives signing agreements on joining into agricultural production and consumption chains with businesses certified by the SBV and the Ministry of Agriculture and Rural Development.

 

Interest rates will be 7 percent per annum for short-term loans, 10 percent for medium-term loans, and 10.5 percent for long-term loans. The pilot will last two years dating from the effective date.