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A total of VND520 trillion of preferential interest rate capital has been disbursed through the banking-business connection program. |
On November 2, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam - HCMC Branch, announced a substantial reduction in interest rates for loans to businesses and business households within the HCMC area, including existing loans.
As of now, about 63 percent of outstanding credit in HCMC carries interest rates below 9.75 percent, while the rest features interest rates below 10.53 percent, mainly for medium and long-term loans. Currently, loans for the five priority sectors total around VND200 trillion, with short-term interest rates in VND not exceeding 4 percent per annum.
Mr. Lenh also revealed that, up to this point, close to 35,000 businesses, business households, and cooperatives in HCMC have undergone debt restructuring and have kept their debt categories intact, resulting in a total outstanding debt of nearly VND39 trillion, which accounts for 27 percent of the national total. Additionally, the disbursement of the 2-percent interest rate support package, in accordance with Government Decree 31, has reached roughly VND23.23 trillion, benefiting 392 borrowers and constituting 36 percent of the nationwide total.
Furthermore, through the Banking-Business Connection Program, HCMC-based commercial banks have disbursed credit packages with preferential interest rates, amounting to VND520 trillion, equivalent to 114.7 percent of the VND453 trillion credit package that 20 banks registered at the beginning of the year.
"The policy of reducing loan interest rates has created conditions for businesses to reduce borrowing costs, alleviate the pressure of loan repayment, and restructure debts appropriately to sustain, stabilize, and develop, facilitating effective cash flow management and capital circulation. This contributes to assisting businesses in overcoming difficulties, promoting economic growth and development," Mr. Lenh stated.
