HCM City: Banks continue to support businesses

14:27 | 13/01/2016 Finance - Banking

Dozens of banks in Ho Chi Minh City have registered to provide loan packages worth VND211.5 trillion (US$9.3 billion) and US$15 million to support businesses in 2016.

HCM City: Banks continue to support businesses

Illustrative image (Source: bizlive.vn)

They also pledged a short-term VND interest rate of 7% per annum, and a long-term rate ranging from 8%-10% per annum, the municipal Department of Industry and Trade reported at a conference in the city on January 8.

Vice Chairman of the municipal People’s Committee Le Van Khoa said the city is striving to raise the banking loan support to VND300 trillion (US$13.2 billion) in 2016, a five fold increase against the previous year.

The local departments and sectors will work to more effectively implement the programme connecting banks and businesses in 2016-2020, furthering assistance for small and medium-sized enterprises (SMEs) in production and support industries, he said.

Deputy Director of the State Bank of Vietnam’s branch in Ho Chi Minh City, Nguyen Hoang Minh, cited that banks had registered over VND173.2 trillion (US$7.6 billion) under the programme to support businesses in 2015 - 2.89 times above the yearly target.

Deputy Governor of the SBV, Nguyen Phuoc Thanh, said the programme has helped forge links between banks and businesses, citing commercial banks have pledged thousands of billions of VND in loans – in partucular soft loans.

He suggested the SBV-Ho Chi Minh City branch, along with commercial banks, should actively get involved in the programme - to help businesses extricate difficulties and reduce the burden on local budgets.

He recommended lowering interest rates for old loans, while increasing credit limits and restructuring debts./.

 

Source: VNA
 

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