Practical values of interest rate support program

Up to now, interest rate support loans of commercial banks and finance companies, by May 14, have reached VND 291,886 billion, an increase of 50% as compared to March 31, 2009.

According to reports of enterprises and local authorities, interest rate support lending has been implemented promptly and in line with regulations. Accordingly, the proportion of the loan outstanding of the state-owned enterprises, the group of non-state businesses (joint-stock companies, liability limited companies, and foreign invested enterprises), cooperatives, and households and individuals are 22.99%, 58.67%, 0.65% and 17.7% respectively. This program has been extremely helpful to many economic households and individuals.

The interest rate support program has encouraged enterprises and households in production and consumption, promoting capital flow and enhancing ability of getting access to bank loans for production and business. Many enterprises have proactively sought markets, formulated borrowing plans for investment and implementing a lot of new projects, thereby increasing credit outstanding to a high level (an increase of 10.28% in the first four months of 2009), and contributing to economic downturn prevention.

With the practical value of the interest rate support scheme, most enterprises wish to be beneficiaries of this support program during the set period, aiming at strengthening their operations, and gradually expanding production and business.

Mr. Pham Gia Tuc, Vice-President of the Vietnam Chamber of Commerce and Industry (VCCI), stated that the program of interest rate support loans provided by nationwide commercial banks in general and Ho Chi Minh City in particular has been implemented in an active and creative manner in order to facilitate production and business of enterprises. He added that up to now, most enterprises have improved their operations and promoted their roles in the economy. These are practical values which are clearly acknowledged and realized by enterprises themselves.

Diem Hang

sbv

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