$9.43 billion in preferential loans made available under latest commitment within program bringing banks and enterprises together.
Seventeen banks committed to provide enterprises in Ho Chi Minh City with almost VND212 trillion ($9.43 billion) in preferential loans on January 8 under a program to connect banks and the city’s enterprises.
The Ho Chi Minh City branch of the State Bank of Vietnam (SBV) said the loans will be used to support small- and medium-sized enterprises (SMEs) and also industry in the city. The interest rate on mid-term loans will not exceed 7 per cent per annum and be from 8 to 10 per cent on long-term loans.
The program has been conducted for four years under the guidance of the Ho Chi Minh City’s People’s Committee, the City’s branch of the SBV, the Ho Chi Minh City Department of Industry and Trade, and related agencies.
Last year the People’s Committee targeted providing VND60 trillion ($2.67 billion) via the program to local enterprises, but the program grew to over VND173.18 trillion ($7.71 billion).
Deputy SBV Governor Nguyen Phuoc Thanh said that almost all enterprises taking out preferential loans have the capacity to repay and bad debts will not be incurred.
Capital flows will therefore circulate and help SMEs to access capital at suitable interest rates at a time when they have struggled to borrow funds due to their limited financial capacity.