Social policy bank to roll out interest cuts worth 3 trillion VND this year

A Vietnam Bank of Social Policy's office in the northern province of Quang Ninh. (Photo: VNA)

Hanoi (VNS/VNA) - The State Bank of Vietnam (SBV) said it had beenworking around the clock to ensure the smooth implementation of an interestrate package cut through the Vietnam Bank of Social Policies (VBSP).

The package, estimated to cut as much as 3 trillion VND in interest rates byslashing 2 percent off the annual commercial rate for eligible businesses, ispart of a larger measure to help the economy get back on track post-pandemic.

VBSP-issued and disbursed loans under governmental decrees, withrecommendations by local authorities, governmental and non-governmentalorganisations, reborrowings from ODA and preferential loans at an annual interestrate greater than 6 percent are to be considered for the package.

VBSP is responsible for making sure the aforementioned loans were issued to theright businesses and the disbursed funds were used for the declared purposes.The package is to run from January 1, 2022, until the end of the year, or untilVBSP ends the package.

All loans issued and disbursed during said periods are considered eligible forthe interest rate cut. Measures are to be taken to ensure transparency andminimise waste and exploits.

VBSP branches are to be held responsible and accountable for the issued loans,which will be reported to VBSP headquarters no later than February 2 of thefollowing year for inspection and approval./.

VNA