Agriculture accounts for 25% of total loan outstanding: SBV Governor

Hanoi (VNA) – Agricultural loan outstanding has reached close to 2.8 quadrillion VND (119.44 billion USD), accounting for roughly 25% of total loan outstanding, said Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong in a written reply to a National Assembly deputy from Dak Lak regarding preferential credit for agriculture and rural development.

There were more than 14.3 million borrowers in agriculture nationwide, Hong said, adding that credit growth in agriculture has been higher than the average pace.

The SBV has also imposed a ceiling interest rate for short-term loans denominated in Vietnam Dong for agricultural and rural development, which is lower than the standard lending interest rate, she said, adding that the rate is currently capped at 4.5% per year.

As demanded by the Government, the central bank has been introducing various credit policies and programmes offering soft loans to help farmers and agribusinesses minimise agricultural losses and expand forest farming and husbandry; and to financially support disadvantaged districts.

It has ordered commercial banks to lower interest rates by 0.5 – 1.5% for borrowers in clean and hi-tech agriculture in line with the Government’s Resolution No.30/NQ-CP dated March 7, 2017.

Over 111.64 trillion VND (4.76 billion USD) in soft loans have been provided to develop clean and hi-tech agriculture since 2017, 11.6% higher than the goal set by the Government, she said./.