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Banking & Finance

SBV encourages HCMC businesses

Released at: 15:02, 17/06/2015

SBV encourages HCMC businesses

Central bank arranges $392.5 million in credit from banks to businesses in southern city at supportive interest rates.

by Hoai An

A signing ceremony was held on June 16 between seven banks - BIDV, Vietinbank, Vietcombank, Agribank, Sacombank, Viet A Bank, and DongA Bank - and 66 enterprises in District 1 and District 3 in Ho Chi Minh City with total loans of VND8.4 trillion ($392.5 million) being made available at interest rates of less than 7 per cent per annum, which is part of an ongoing credit program.

Deputy Director of the Ho Chi Minh City Branch of the State Bank of Vietnam (SBV), Mr. Nguyen Hoang Minh, said he hopes the credit program will promote efficiency among the City’s business community. The government, the Ho Chi Minh City People’s Committee, and the Governor of the SBV will work with enterprises to resolve any difficulties in the program.

After three years of implementation, Mr. Minh added, the credit program has disbursed more than VND120 trillion ($5.6 billion) with preferential interest rates. He also said, however, that although the Ho Chi Minh City Branch and related departments and agencies have tried to help many enterprises access loans there have been cases where this hasn’t been possible.

Therefore, the branch will coordinate with representatives in specific districts, the City’s Department of Industry and Trade, and management boards of industrial parks to review and determine eligible enterprises. The SBV has also directed commercial banks to lend to businesses to the end of the year regardless of whether they have collateral or not.

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