Techcombank plans to lend $2.9 bln under loan subsidy program

Vietnam Technological & Commercial Joint-Stock Bank, partly owned by HSBC Holdings Plc, plans to lend VND50 trillion at reduced interest rates after the government agreed to subsidize loans to boost the economy.

Techcombank, as the bank is known, will lend to companies at interest rates as low as 5 percent, according to a statement posted on its website Friday. The lending would “remove difficulties” in funding, especially for small- and medium-sized enterprises, Deputy General Director Luu Thi Ai Xuan said.

The government plans to use VND17 trillion ($1 billion) from a stimulus package to subsidize loans after the economy expanded at the slowest pace since 1999. Banks may lend at a maximum of 10.5 percent at present.

Asia Commercial Bank, the biggest publicly traded company, said Thursday that it has earmarked VND35 trillion ($2 billion) for the subsidy program. “We want to support the government,” Chief Executive Officer Ly Xuan Hai said.

 Bloomberg

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