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Stimulus programme has 4,000 problem cases
There have been 4,000 cases where problems in lending under the demand stimulus programme have been found, the State Bank of Vietnam (SBV) reports.
The demand stimulus programme was launched earlier this year, under which, businesses can receive a four percent interest rate subsidy to fund their production plan.
The programme is due to terminate by December 3 this year. Earlier, at the half way mark, economists expressed concern that loans under the preferential lending programme may not go to the right recipients.
As a result economists have called on the central bank to review disbursement.
SBV reports that it has found problems in 3,923 loans worth 8,334 billion dong ($490.23 million). Most problems were found at joint stock banks, with others at state owned banks.
The central bank said many loans have been used to make investment in fields which are not subject to the preferential lending programmes. In other cases, the same borrowers have acknowledged debts at two different credit institutions. Others borrowed money just to pay old debts.
The highlighting of problems has boosted the arguments of those who do not advocate launching a second stimulus package.
Duong Thu Huong, secretary general of the Vietnam Banking Association (VNBA), said that although the interest rate subsidy programme was useful it needs to be terminated by December 31, 2009 instead of being extended as suggested by many experts.
Huong says that only 20 percent of businesses have been able to access the interest rate subsidy package, while the other 80 percent of businesses. This has meant inequality.
“Some businesses complain about the overly complicated procedures of the programme. I heard that a business has to show a lot of documents to banks, but it still could not get loans,” Huong said.
Governor of the State Bank of Vietnam Nguyen Van Giau said that the central bank is checking the result of the demand stimulus package to report to the national Assembly soon.
VietNamNet, VNE
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