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Smaller firms get credit help
New working groups will help small and medium-sized enterprises access loans
The State Bank of Viet Nam has established working groups in Ha Noi and HCM City to facilitate small- and medium-sized enterprises (SMEs) in accessing bank credit.
The groups will be headed by the deputy directors of the State Bank branches in the two cities and will co-ordinate with trade associations to ascertain difficulties encountered by SMEs in obtaining credit as well as propose solutions.
The work of the groups will be reported weekly to the central bank and publicised in the mass media.
According to the State Bank, only about half of all SMEs have ongoing credit relationship with banks, and the Ha Noi SME Association has called upon the State Bank to do more to get banks to make more loans to SMEs.
State Bank Governor Nguyen Van Giau, meanwhile, has vowed to keep management policies flexible to increase commercial bank liquidity, lower lending interest rates, and assist banks to restructure or extend loans for enterprises in difficulty during the current economic slowdown.
The State Bank will assist any enterprise that cannot obtain credit to locate a suitable lender.
Meanwhile, commercial banks have begun lowering lending interest rates following the State Bank's latest cut to the prime rate last week.
According to the latest report from the State Bank, short-term lending rates at State-owned banks are now ranging from 10 to 12.5 per cent per year, while longer-term loans are being charged 14 per cent. The highest possible lending rate by law is 15 per cent.
The rates are generally 6-11 percentage points lower than their peaks in late June.
The Rank for Investment and Development of Viet Nam (BIDV) is offering loans at the lowest interest rate, just 0.83 per cent per month, or 10 per cent annually. Eligible borrowers include manufacturers of essential goods, small- and medium-sized enterprises, and exporters. Other borrowers are expected to pay 11.5-13.5 per cent per year.
Viet Nam Bank for Industry and Trade (Vietinbank) is offering preferred borrowers rates of 12-14 per cent, while borrowers at the Bank for Agriculture and Rural Development (Agribank) are obtaining loans at as low as 10.92 per cent.
The lowest Interest rate on the market currently has been Mekong Housing Bank, making some loans at a rate of only 10 per cent per year.
Among joint-stock banks, the Bank for Foreign Trade of Viet Nam (Vietcombank) is offering the lowest lending rate of 10.5 per cent for preferred borrowers with good business performance.
Exporters who commit to sell foreign currencies to Vietcombank can borrow Viet Nam dong for as low as 5.04 per cent per year. Other borrowers are expected to pay 12.5-13.6 per cent.
Viet Nam News
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