|
Commercial banks continue rate cuts
Commercial banks have continued to cut interest rates for dong loans - one to 4.5 per cent - in their bid to provide struggling enterprises with cheaper credit.
HCM City-based Eximbank announced a 180-day fixed 4.5 per cent-rate for exporters who commit to repay in the dong equivalent of US dollar at the rate of exchange when the loan was made.
Exporters who opt to pay at the exchange rate prevailing at that time of the repayment will be charged yearly interest of 9 per cent or a monthly 0.75 per cent.
State-owned Viet Nam Bank for Industry and Trade, or Vietinbank, set the rate for short-term loans at a yearly 8.5 per cent from yesterday.
Lien Viet Bank will charge about 9.5 per cent to preferred customers with deposits of at least VND10 billion (US$574,712) who cultivate, process and export agro-fish produce and food as well as households that need capital to develop craft villages.
Asia Commercial Bank and Sacombank also reduced their rates but did not provide details, saying that the creditworthiness of each customer was different.
The Bank for Investment and Development of Viet Nam (BIDV) had already reduced its preferential short-term lending rates from a yearly 8.5 to 8 per cent for customers with export contracts and commit to sell it hard currency.
Preferential rates remained at 8.5 per cent at Vietcombank yesterday but the yearly regular rate was 10 per cent - one per cent lower.
The regular rate for dong loans was 10.5 per cent - the prevailing limit. The cost of dollar loans ranges from 5.0 to 6.5 per cent.
Cautious
Although the State Bank of Viet Nam has continually cut interest rates and the Government has approved a 4-per-cent-interest subsidy for short-term loans, enterprises seem cautious about seeking bank loans.
Viet Nam Small-to-Medium Sized Enterprises (SMEs) Association Chairman and former central bank governor Cao Si Kiem argued: "The lower borrowing costs provide an impetus for enterprises to access bank loans."
But Duc Viet Food Co Director Mai Huy Tan told Viet Nam News: "The lower lending rate and the 4-per-cent-interest-rate subsidy is great.
"We would have been happy with 8 per cent so it's incredible to get 6 per cent instead. I'm eager to see how it will be implemented.
"But I can say for sure that the consumer market is our biggest worry. Our business is in a quite hard period."
Representatives of several enterprises told Viet Nam News they had been denied new credit until their existing loans were repaid.
"I had to wait months to enjoy the lower lending rates," said Thu Ha Coffee Co General Director Ngo Tan Giac.
The owner of the enterprise in Central Highland's Gia Lai Province had wanted to build a new factory but most of the low-interest loans were short-term only.
"Now we must focus on doing no more than survive," said the general director.
Viet Nam Rubber Association General Secretary Tran Thi Thuy Hoa told Viet Nam News that survival also pre-occupied the managers of rubber processing and export enterprises.
The entire gamut of SMEs were aware they would have to face many challenges.
Non-performing loans
Viet Nam Small- and Medium-sized Enterprises Association Chairman Cao Si Kiem and other economists cautioned both banks and enterprises about the need for prudence with credit.
If banks and enterprises did not thoroughly assess borrowing during the next months, the lenders could be left with non-performing loans and the inflation, said the former central bank governor.
"The central bank should keep its eyes on the credit provided by banks and issue concrete regulations to handle any unexpected situation," he warned.
But bankers were quick to reassure Viet Nam News that they would balance capital out with income and provide support for enterprises in accordance with Government directions.
"Helping enterprises helps banks," said Asia Commercial Bank Deputy General Director Nguyen Thanh Toai.
"But banks should never make raising loans too easy or they will kill themselves" he added.
VietNamNet, Viet Nam News
|
