Another $94 million for agricultural development

Just 7 percent of loan interest rate of the VND 2 trillion (US$ 94million) loan package for agricultural development projects will be provided to some provinces & cities nationwide by comercial banks.

Large scale rice field in the Mekong Delta is one of agricultural development modals promoting connectivity between businesses and farmers (Photo: VNA)

The State Bank of Vietnam Governor has approved a list of commercial banks and customers who will attend in a loan pilot program for agricultural development.

The banks will continue loaning connectivity modals in agricultural production in Lam Dong, Nam Dinh, Dong Thap and Nghe An Provinces and Can Tho City. These modals will promote hi-tech application and boost consumption of agricultural products.

Of the VND2 trillion, Can Tho City is expected to need VND284 billion, Lam Dong of VND80 billion and Nam Dinh of VND75 billion. Capital demand in Dong Thap is VND1,047 billion and Nghe An is around VND524.50 billion.

Maximum loan interest rate is 7 percent in short term, 10 percent in medium term and 10.5 percent in long term, according to the State Bank.

By Ham Yen – Translated by Hai Mien

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