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Banks asked to extend loan schedule for steelmakers
The State Bank of Vietnam has asked commercial lenders to give steel companies more time to repay debts as the global financial crisis hits exports and slows domestic consumption.
The central bank has requested commercial banks to revise schedules on overdue debt that steelmakers have found impossible to repay as demand for steel and export volumes decline, according to a statement posted on the government’s website.
The bank has also asked local lenders to consider extending repayment schedules on loans that aren’t overdue to help steel companies “overcome difficulties” and “maintain production,” the statement said.
Steel demand in Vietnam has slumped as the highest interest rates in
Asia hurt the construction industry, forcing developers to scale back projects. Prime Minister Nguyen Tan Dung is trying to counteract the slowest economic growth in the nation since 1999.
The Ministry of Finance boosted tariffs on steel billets imports to 5 percent from 2 percent to discourage shipments and help local makers clear stockpiles, Pham Chi Cuong, chairman of the Vietnam Steel Association said December 15. The country has more than 500,000 tons of finished steel and billets in stock, he said.
Steel production in Vietnam increased 24 percent by value to US$6.34 billion while decreasing 5 percent by volume in 2008, according to the General Statistics Office.
Bloomberg
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