Banks to disburse US$5.86 billion low interest loans in second half

Nineteen commercial banks in Ho Chi Minh City will disburse VND127,333 billion (US$5.86 billion) of low interest loans to businesses in the second half this year under the Bank-Business Connectivity Program, said Mr. To Huy Lam, director of the State Bank of Vietnam in Ho Chi Minh City on July 24. 

Banks and businesses signed an agreement to continue attending the Bank-Business Connectivity Program in HCMC on July 24 (Photo: SGGP)

The conference was hosted to review three years of the program launched in 2012 by the Ho Chi Minh City People’s Committee, aiming to help businesses overcome difficulties, recover and develop production.

A total of VND77,607 billion (US$3.57 billion) was disbursed in the first six month this year, nearly VND11 trillion beyond plan and higher than the total number of the last two years.
For the last three years, the program has bridged 6,298 customers to bank loans with a total fund of VND145,116 billion (US$6.68 billion).
Businesses from every production and trading fields and economic sectors have been loaned at the yearly interest rate of 6-7 percent for short terms and 9 percent for medium and long terms.
HCMC will have policies to continue solving businesses' difficulties and creating an advantageous competition environment for them in the second phase of the program, 2016-2020.
Deputy chairwoman of the city People’s Committee Nguyen Thi Hong said that the program had contributed in recovering production and trading, boosting growth and developing the city’s economy.
Beside production and trading, it should pay attention to nine service fields and four key industries which the city have defined to promote effectiveness in the upcoming time, she said.
Ms. Hong displayed the good and effective coordination of authorized agencies in the program’s implementation. They include the HCMC branch of the State Bank, the city Department of Industry and Trade, district authorities and business associations.

By Hanh Nhung – Translated by Hai Mien

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