Hi-tech agricultural enterprises given loans hinh anh 1A farm in northern Nam Dinh province (Source:VNA)
Hanoi (VNA) – As many as 28 enterprises nationwide have been selected to participate in 31 agricultural projects that apply hi-tech models with low interest loans, the State Bank of Vietnam (SBV) has said.

The amount of money allocated to help these enterprises to develop their models is nearly 7 trillion VND (339 million USD), it said.

The programme is carried out under the Government’s Resolution No.14, which will as a trial provide loans to enterprises which have agricultural models running from production through processing to consumption, and applying high-tech methods to increase production.

The lending rates will be about 1 to 1.5 percent lower than the normal annual rates, 6.5 percent for short-term loans, 9.5 percent for medium-term loans and 10 percent for long-term loans.

Enterprises will be eligible for loans of up to 90 percent of their agricultural production project costs. In cases where they fail to demonstrate enough asset security as required, they can still get a loan based on the bank’s control of cash flow.

If the time for implementing the project is between 12 and 18 months, and each stage of production, processing, and consumption is estimated to be less than 12 months, enterprises will be eligible for the loan at this low interest rate if they commit to pay off part of the debt after every stage.

A representative of the SBV said that the bank, together with the ministries of agriculture and rural development, and science and technology, had chosen 28 enterprises in 22 cities and provinces to join the programme.

As many as eight banks have committed to give financial support to enterprises totaling more than 5.6 trillion VND (263 million USD). The two-year trial of the programme will be completed this May.

Explaining the disbursed amount of money of 7 trillion VND, an increase of 1.4 trillion VND (62.7 million USD) compared to the initial amount committed to enterprises, the representative said that some enterprises have asked to expand their production during the implementation of the programme.-VNA