Corporate borrowers get Government interest support
03/02/2009 09:11 am
Laws - Manufacturing and
trading firms can take four percentage points off the interest rates
for loans they will get from banks this year, according to a decision
signed by the Prime Minister just ahead of Lunar New Year holidays.
The banks subject to the decision include State-owned and private banks, joint-venture banks, foreign banks’ branches in Vietnam, foreign-owned banks, and central people’s credit funds.
Those institutions giving loans to corporate clients in need of working capital for manufacturing and trading activities cannot refuse suggestions for interest rate support if the loans are under the category enjoying Government backing. Banks must make relevant monthly reports to the State Bank of Vietnam.
The maximum term for loans enjoying interest rate support is eight months for credit contracts to be signed and disbursed within this year. Borrowers will get support based on the amount of loan and lending terms. The decision says that commercial banks must deduct the interest rates for borrowers and will be repaid by the central bank based on banks’ quarterly reports.
Banks must report the amount of money for the interest rate support on the early days of each quarter and register the number for the next quarter.
Eligible customers can send applications to banks to have the support. However, there are 13 sectors which will not have the support from the Government, including mining, finance, defense, social insurance, education, healthcare, entertainment and sport, assets trading and consulting (excepting building houses for low-income people), imported luxury goods, securities investment, and real estate trading
The banks subject to the decision include State-owned and private banks, joint-venture banks, foreign banks’ branches in Vietnam, foreign-owned banks, and central people’s credit funds.
Those institutions giving loans to corporate clients in need of working capital for manufacturing and trading activities cannot refuse suggestions for interest rate support if the loans are under the category enjoying Government backing. Banks must make relevant monthly reports to the State Bank of Vietnam.
The maximum term for loans enjoying interest rate support is eight months for credit contracts to be signed and disbursed within this year. Borrowers will get support based on the amount of loan and lending terms. The decision says that commercial banks must deduct the interest rates for borrowers and will be repaid by the central bank based on banks’ quarterly reports.
Banks must report the amount of money for the interest rate support on the early days of each quarter and register the number for the next quarter.
Eligible customers can send applications to banks to have the support. However, there are 13 sectors which will not have the support from the Government, including mining, finance, defense, social insurance, education, healthcare, entertainment and sport, assets trading and consulting (excepting building houses for low-income people), imported luxury goods, securities investment, and real estate trading
Source: Sai Gon Times
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