Illustrative image (Source: VNA)
Hanoi (VNA) - Commercial banks in Hanoi have committed to set aside 150 trillion VND (6.7 billion USD) for a credit support package.

The purpose is to help enterprises increase production to meet rising demand and stabilise the market with the Lunar New Year approaching.

The information was released by Hoang Viet Trung, deputy director of the State Bank of Vietnam's (SBV) Hanoi branch, during a recent conference to strengthen the link between banks and businesses co-organised by SBV and the Hanoi People's Committee.

The funds would be disbursed from now until the mid of 2017, with preferential interest rates offered at 1.5-2 percentage points lower than the common rates, Trung said.

Vice Chairman of the Committee Nguyen Doan Toan said the package would be used to help more than 200,000 local enterprises tackle difficulties while seeking loans for business and production.

It would also encourage them to participate in the market stabilisation programme and store goods to serve people's demand during floods, holidays and festivals.

Quach Hung Hiep, a representative of the Bank for Investment and Development of Vietnam, said after two years of participating in the bank-business linking programme, the bank had lent 130 trillion VND to enterprises, contributing to their development. However, he suggested that the city's People Committee clearly define production sectors that needed support and which would be prioritised to increase the efficiency of the programme.

Also at the conference, 10 commercial banks and 11 enterprises signed cooperation and credit agreements with loans committed reaching 3 trillion VND (134.5 million USD).

Le Hong Thang, Director of the city's Department of Industry and Trade, said the department was planning to organise a promotion day for credit institutions in the city in November 2017 under the framework of the year's promotion campaign.

According to the branch's report, outstanding loans offered in line with bank-business linking programmes in the city have been increasing over the past two years.

Since the beginning of this year, 120 commercial banks and branches signed credit support contracts with local firms worth 170 trillion VND, of which 70 percent was disbursed.-VNA