A farmer shows off his coffee harvest in the central highland province of Lam Dong. (Photo: VNA) Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), said theentire amount had been disbursed successfully, nearly two months before thedeadline of the end of June 2024.
He said the loans, with interest rates lower than market rates by 1-2%annually, were designed to help the sectors cope with and overcome difficultiesexperienced during this turbulent period.
He said the central bank is willing to increase the amount to over 30 trillion VNDif there is strong demand within the sectors. According to a report by the centralbank, accumulated funds of over 17.5 trillion VND have been disbursed so faramong 6,500 borrowers.
Among these, loans intended for agroforestry have reached 4.45 trillion VND, or25.7%, while loans intended for the aquatic sector have reached over 13trillion VND, or 74.3% of the total, with the lion's share going to businessborrowers at 83% of the total amount.
Nguyen Hoai Nam, Secretary-General of the Vietnam Association of SeafoodExporters and Producers (VASEP), said the credit scheme has been a welcomeboost, relieving a lot of financial pressure on businesses.
With the sectors' prospects for the remainder of the year looking increasinglybright, he said the amount should be increased to 30 trillion VND to allowbusinesses and farmers to ramp up investment in expanding production, gettingready for market rebound.
However, several participants voiced concerns over the support scheme'saccessibility as businesses have reported certain banks' unwillingness to takepart.
In a recent survey conducted by VASEP, businesses and farmers are especiallyinterested in low-interest loans in both US dollar and Vietnamese dong, withbanks implementing a more streamlined loaning process.
"The credit ratio for export companies is expected to increase to overhalf of the funds in the remaining months of 2024, almost double the amountdisbursed to them so far," said a VASEP representative.
Trinh Duc Kien, Deputy Director of a wood export company, said many firms inthe industry have been facing significant pressure to repay previous loans.
"In addition to lower rates, businesses also look forward to longer termsto repay their borrowings," he said. Kien also called for greater supportto be provided to small and medium-sized enterprises (SMEs).
Phung Thi Binh, Deputy Director-General of Agribank, said the bank hasexperienced some difficulties during the implementation of the support scheme,including issues in managing cash flow and monitoring invoices by borrowers.
The central bank's deputy governor said it is in businesses' interest to worktogether with banks to work out solutions to preventing capital loss. Regardinga common request by businesses to extend borrowing terms, he said the decisionfalls under the banks' jurisdiction and discretion, but banks must do all theycan to support businesses./.
VNA
