Government orders continued bank loans for cement projects
Source: 29-JUL-2008 Intellasia | Tien Phong | VNA
Jul 29, 2008 - 7:00:00 AM Vice prime minister Hoang Trung Hai has ordered the State Bank of Vietnam to direct commercial banks to continue ensuring capital for cement projects undergoing the signing of credit contracts in an expectation that these projects will come into operation in 2008-2009.

Accordingly, Bank for Investment and Development of Vietnam (Bidv) has responsibility to keep disbursing capital for lawful projects, especially giving priorities to projects in the south. And businesses should re-structure capital of projects to gain initiatives in capital mobilisation.

Partners must carry out under the current interest rates as for non-disbursed capital and negotiate suitable interest rates based on the principle of co-sharing risks as for disbursed capital.

When needing to have domestic banks' guarantee to borrow foreign loans, businesses should gain initiatives in negotiating and selecting banks in charge of capital guarantee.

Particularly the projects are set for production in 2010, the Ministry of Construction will check and re-balance capital mobilisation speed based on calculating estimated growth in following years and discuss with commercial banks to have suitable capital arrangement plans.

Also, Ministry of Natural Minerals and Environment was assigned to urgently report reform of procedures to grant ore mining license to cement projects.