Measures to promote credit growth

17:00 | 21/05/2014 Economy

(VEN) - State Bank of Vietnam (SBV) and commercial banks have taken active measures to increase credit for the economy. Low-cost capital resources have continued to be provided with the hope to boost credit growth in the second quarter of 2014.

Businesses can seek bank loans to continue their unfinished investment projects

Lower interest rates for house buyers

Eight banks, including Sacombank, Agribank, BIDV, Vietcombank, DongA Bank, ACB, Eximbank and ABBank, recently signed contracts to provide 45 businesses in Ho Chi Minh City’s Binh Thanh District with credit loans totaling nearly VND1.11 trillion with an annual interest rate of seven percent. This was part of a program implemented under the guidelines of the Ho Chi Minh City People’s Committee and SBV’s Ho Chi Minh City Branch. Banks have been committed to providing businesses in the city with loans totaling tens of trillions of dong at preferential interest rates. In the field of real estate, the Saigon-Hanoi Commercial Joint Stock Bank (SHB) and the Urban Infrastructure Development Investment Corporation (UDIC) recently signed an agreement to promote comprehensive cooperation between the two sides. Along with providing capital for UDIC’s projects, SHB will provide UDIC’s customers with loans at competitive interest rates to help them buy apartments at a trade service and residential complex at 122 Vinh Tuy, Hanoi, which is an investment project of UDIC. SHB and the Tan Hoang Minh Group have signed a cooperation contract, under which the bank will provide the group’s customers with loans at an annual interest rate of 8.68 percent to help them buy apartments of the D’le Pont D’or project on Hoang Cau Street, Dong Da District, Hanoi. This interest rate will be applied in the first 12 months of the loans and the Tan Hoang Minh Group will pay part of the interest (3.68 percent) for its customers, meaning that those who buy apartments of this project will have to pay SHB interest at an annual rate of five percent in the first year. In following years, the interest will be adjusted every three months.

On May 12, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) signed a contract with the Ninh Binh Nitrogenous Fertilizer Company Limited, under which the bank will provide the company with credit loans totaling VND800 billion to help it expand production. Vietcombank Deputy General Director Pham Quang Dung said that Vietcombank pledged to accompany the Ninh Binh Nitrogenous Fertilizer Company Limited throughout its development process to meet on a timely basis its demand for capital.


Piloting four-side cooperation

To increase the support for real estate businesses, the SBV has launched credit products resulted from pilot cooperation between four sides at eight commercial banks: BIDV, VietinBank, Vietcombank, Agribank, Cuu Long Delta Housing Development Bank, Vietnam Construction Bank, LienVietPostBank and SHB. SBV Governor Nguyen Van Binh indicated that these credit products were created with the aim to help real estate businesses overcome difficulties and promote sales to reduce inventories. This four-side cooperation program also allows businesses with overdue debts to borrow so that they can continue their unfinished investment projects. SBV encouraged credit institutions to cooperate with each other in controlling money flows to ensure that their loans are used for the right purposes, thus improving the quality of credit and reducing bad debts in the banking system.

Steel businesses have received credit support from the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) to promote exports. Specifically, Techcombank have provided steel businesses with risk management solutions which protect businesses against price changes in the global market. Techcombank will be responsible for bearing losses caused by prices differences./.

                      By Duy Minh