Stimulus packages continue at lower loan interest subsidy

The Government will continue with its policy to stimulate the economy and support social welfare in 2010, extend stimulus packages but lower loan interest subsidy, limiting the number of targeted beneficiaries and shortening the duration of loans.

Prime Minister Nguyen Tan Dung made this decision at the Government’s October session after a two-day sitting on Oct. 29-30 to discuss the socio-economic situation and the implementation of economic stimulus polices.

Under the decision, the subsidised interest rate will how be halved to 2 percent (for mid and long-term loans.)

According to the Minister of Planning and Investment, Vo Hong Phuc, the Government at the fifth session of the 12 th National Assembly reported an estimate of 145.6 trillion VND, (more than 8 billion USD) for implementing policies on economic stimulus and social welfare in 2009 and coming years.

The sum includes 17 trillion VND (about 1 billion USD) for loan interest subsidy, 90.8 trillion VND for development investment, 28 trillion VND for tax exemptions and reduction, and 9.8 trillion VND for other plans.

By Oct. 22, the total loans with subsidised interest rates have amounted to 412.1 trillion VND, with 15.1 percent for State-run enterprises and 84.9 percent for non-State and household businesses.

The opinions at the session agreed that the policy subsidising interest rates was one of the optimal solutions to stimulate economic development and stop the economic slowdown.

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