Over 4,200 companies in HCM City have taken out bank loans with low lending rates of 13-15 percent per annum for a combined value of VND25.24 trillion since the middle of May, according to the HCM City Branch of the State Bank of Vietnam (SBV).
Of the corporate borrowers, small and medium-sized enterprises (SMEs) have been given VND13.98 trillion, the branch’s deputy director Nguyen Hoang Minh told a Q&A session at the city’s People’s Council meeting on Thursday.
According to Minh, many enterprises belonging to the four priority groups have been given financial support, including exporters with VND3.25 trillion, farm producers and processors with VND3.56 trillion and supporting manufacturers with VND4.45 trillion.
Minh announced Sacombank will continue lending to 15 SMEs in dong and US dollar with a credit line of VND2 trillion and $50 million with an annual lending rate of 13 percent and 4-5 percent respectively.
Minh said DongABank from next week will also set aside VND40 billion to finance seven companies with an interest rate of 13 percent per year, adding other lenders in the city will keep providing soft loans to farmers in the outlying coastal district of Can Gio at the same time.
The city’s credit growth in January-June was much lower year-on-year, at a mere 0.27 percent, equivalent to the average rate of the whole country as observed by Minh. But he asserted the preferential loans are for target industries and areas only.
He revealed the central bank in the second half of the year will continuously seek ways to remove difficulties of struggling enterprises. For instance, the monetary authority will request commercial banks to restructure old loans for corporate debtors, to cut or exempt lending rates for existing credit contracts and lower the rates to below 15 percent prior to next Sunday, he clarified.
“Local lenders this week have been slashing lending rates and the ceiling deposit rate while they have capped the lending rate at 13 percent a year, with borrowers allowed to take out foreign currency loans expanded as well,” he added.