Illustrative image (Source: bizlive.vn)

HCM City (VNA)
– Dozens of banks in Ho Chi Minh City have registered to provide loan packages worth 211.5 trillion VND (9.3 billion USD) and 15 million USD to support businesses in 2016.

They also pledged a short-term VND interest rate of 7 percent per annum, and a long-term rate ranging from 8-10 percent per annum, the municipal Department of Industry and Trade reported at a conference in the city on January 8.

Vice Chairman of the municipal People’s Committee Le Van Khoa said the city is striving to raise the banking loan support to 300 trillion VND (13.2 billion USD) in 2016, a five fold increase against the previous year.

The local departments and sectors will work to more effectively implement the programme connecting banks and businesses in 2016-2020, furthering assistance for small and medium-sized enterprises in production and support industries, he said.

Deputy Director of the State Bank of Vietnam’s branch in HCM City, Nguyen Hoang Minh, cited that banks had registered over 173.2 trillion VND (7.6 billion USD) under the programme to support businesses in 2015 - 2.89 times above the yearly target.

Deputy Governor of the SBV, Nguyen Phuoc Thanh, said the programme has helped forge links between banks and businesses, citing commercial banks have pledged thousands of billions of VND in loans – in partucular soft loans.

He suggested the SBV-HCM City branch, along with commercial banks, should actively get involved in the programme - to help businesses extricate difficulties and reduce the burden on local budgets.

He recommended lowering interest rates for old loans, while increasing credit limits and restructuring debts.-VNA