The Department of Industry and Trade in Ho Chi Minh City has notified that commercial banks are now disbursing loans to enterprises who are participating in the price subsidized program this year.
The Vietnam Bank for Agriculture and Rural Development (Agribank), will consider putting aside VND152 trillion (US$7.2 billion) for long and short-term loans to three enterprises; Saigon Thuong Tin Bank (Sacombank) is going to provide VND258 billion ($12.3 million) to participants of the price subsidized program; Vietnam Export-Import Bank (Eximbank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) will provide financial assistance to registered companies participating in the price subsidized program.
The Department of Industry and Trade said that by April 15 a total amount of VND600 billion ($28.7 million) will be available for disbursement.
Firms will avail of loans from Commercial Banks and Credit Institutions at low interest rates. In addition, firms can also ask for capital funding from the stimulation package program set by the City People’s Committee, to encourage agricultural firms to use new technologies and develop farming.
Banks and Credit Institutions plan to provide VND1,961 billion to enterprises participating in the price subsidized program this year. VND861 billion will be made available for short-term loans of less than 12 months at an interest rate of 6 percent per year; and VND1,100 billion will be available for long-term loans to agricultural firms at an interest rate of 10 percent per year.