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SMEs ask for loans to be rescheduled
The Viet Nam Association of Small- and Medium-sized Enterprises (VinaSME) has called on the Government to reschedule old debt to create favourable conditions for their members to access new loans to recover production and business.
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| Workers making furniture at Duc Trong Company in Ha Noi's Thuong Tin District. |
Luong Ngoc Nhan, association deputy chairman, said that the proposal could create a good chance for SMEs to utilise profits made from new loans to pay off old bank debts.
"Currently, most SMEs need loans to buy materials for processing export goods. The Government has urged banks to create favourable conditions for exporting SMEs in getting loans while the association has signed contracts on providing loans for SMEs with the Viet Nam Industry and Trade Joint Stock Bank (VietinBank)," Nhan told the Lao Dong newspaper.
However, such efforts were not enough, Nhan said, adding that VinaSME members needed more capital during difficult periods or face closure.
In fact, interest rates have remained high at 18-19 per cent per year, he said, adding "Normally, SMEs need only four years to pay back loans, but most need more time at present."
Luong Van Tu, chairman of the Viet Nam Coffee and Cacao Association, said that amidst this year's economic conditions, while export activities have increased, SMEs still lacked capital for processing export products.
A probable solution could see banks rescheduling debt to create conditions for enterprises to develop production of export goods, Tu said.
Tran Dinh Thien, director of the Viet Nam Institute of Economics, said that by the end of 2012, the number of enterprises facing bankruptcy and mergers would rapidly increase, necessitating Government studies on the relations between inflation targets for 2012 and the "health" of enterprises.
The latest Ministry of Planning and Investment statistics reported that around 50,000 enterprises fell into bankruptcy and stopped paying taxes during the first nine months of 2011.
Next year, enterprises stand the chance to gain additional capital with credit growth targets for 2012 expected to increase by 2-5 per cent against the current rate of 12-13 per cent.
vietnamnews
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