Vietnam cuts rate on export credit to 2.9 percent

The government said Monday it has slashed the interest rate on export credit to 2.9 percent a year from 6.9 percent to boost lending.

The new rate applies to loans obtained from the Vietnam Development Bank (VDB) between April 17 and December 31 this year, according to a statement posted on the government’s website.

In February, it lowered the annual rate on export credit to 6.9 percent from 10.8 percent but it was still higher than the rate offered by commercial banks under the government’s 4-percent interest subsidy program. These banks are offering subsidized loans at 4-5 percent or less a year.

The VDB has lent exporters VND9.44 trillion (US$531 million) so far this year. Overall, it has provided loans of VND15.3 trillion.

The non-profit VDB, the successor to the Development Assistance Fund, was established in 2006 with a chartered capital of VND5 trillion to fund exports and public infrastructure works.

thanhnien

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