Banks issue 13.4 billion USD in subsidised loans

About 236.82 trillion VND (13.38 billion USD) has been injected into the economy at the Government-subsidised interest rate of 4 percent.

The State Bank of Vietnam (SBV) said State-owned banks and central credit funds have loaned 175.93 trillion VND (9.94 billion USD) since the rate was launched early last month.

The programme is likely to inject another 183.18 trillion VND (10.34 billion USD) into the economy this year for a total of 420 trillion VND (23.73 billion USD).

The State Bank Governor, Nguyen Van Giau, said the programme was intended to lower the price of goods, maintain production and create jobs.

In a bid to provide more loans to companies, especially small- and medium-sized enterprises (SMEs), the Government last week told the Vietnam Development Bank to guarantee loans to SMEs for approved developments such as building workers houses.

Besides mobilising idle capital to meet increasing demand from the first subisided programme, banks are reportedly trying to absorb more and more mid and long-term capital to prepare for the second subisided loans programme approved earlier this month.

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