|
Long-term interest rate subsidy programme revivifying
The news that the government has decided to apply the 4% interest rate subsidy programme for medium- and long-term loans as well has been applauded by businesses, who believe that this will have more impact than the short-term interest rate subsidies applied for the last two months.
Ho Huu Hanh, Director of the HCM City Branch of the State Bank of Vietnam, said that commercial banks feel happy about the news, as they believe credit will grow significantly with the interest rate subsidy programme.
General Director of East Asia Bank (EAB) Tran Phuong Binh said that many businesses still dare not borrow money under the interest rate subsidy programme because they don’t have much time from now to December 2009, when they have to pay debts.
However, the businesses now may consider borrowing money as the loans will be 24 months at maximum. The interest rate subsidy programme for medium- and long-term loans is being applied from April 1, 2009 to December 31, 2011.
General Director of Lien Viet Bank Nguyen Duc Huong believes that if the State Bank of Vietnam implements the interest rate subsidy programme soon, the sum of money to be disbursed to businesses in 2-3 months will far exceed the current level of VND205,000bil.
Huong said that the loan duration of 24 months would be enough for businesses to make long-term business plans, which will prompt them to get bank loans.
The director of a joint-stock bank said that the government’s decision on applying the interest rate subsidy for medium- and long-term loans proves to benefit both businesses and commercial banks. Businesses can borrow money for long-term business plans while banks can find outlets for their surplus capital.
Associate Prof Dr Tran Hoang Ngan, Deputy President of the HCM City Economics University, said that besides the benefits to be enjoyed by businesses and banks, the subsidy will also benefit the national economy as a whole. If businesses and banks grow well, this will help the national economy to recover.
Economists said that consumers will get indirect benefits as businesses can cut production costs with the low interest rates.
Diep Thanh Kiet, Deputy Chairman of the HCM City Knitting, Embroidery and Textile Association, said that though lacking orders is the biggest problem of businesses at this moment, it would be a helping hand for enterprises to enjoy low interest rates for long-term business plans. The bigger the scale of enterprises is, and the bigger loans businesses get, the more benefits they can obtain.
The general director of a consumer production company said that his company has saved VND200mil from the interest rate subsidy programme in the last two months. If the programme lasts until the end of the year, the figure may reach VND2.5bil, enough to help skilful workers in difficulties and retain qualified staffs.
Tran Kiem Anh, Chairwoman of HCM City-based Hoang Anh Company, said that the company can reduce production costs by 3-5% from the interest rate programme. If the government extends the programme, her company will be able to cut costs further.
Businesses all say that they have to struggle themselves to survive the crisis, but the interest rate subsidy programme will be a useful helping hand. Though some problems still exist with the short-term interest rate subsidy programme, in general, the programme has really helped businesses overcome difficulties.
Analysts say that with the decision, Vietnam’s economy may very likely recover sooner than expected.
VietNamNet/TP
|
