Banks told to rollout low-interest businesses loans
- Business
- 17:32 30/05/2022
DNHN - Commercial banks were told to launch a 40 trillion VND support package with a 2 percent yearly rate cut for businesses in a meeting with the State Bank of Vietnam (SBV) last week.

"Now is the right time to start the support package, which will boost business confidence to ramp up production and commercial activities," said SBV's deputy governor Dao Minh Tu.
By May 20, Vietnam economy's credit growth was at 7.66 percent, double the figure from the same period last year. More importantly, the growth has been recorded in all major economic sectors including those that have been struggling since the start of the COVID-19 pandemic, such as tourism, transport and services.
It has been vital during a time when businesses desperately require capital to resume operations after a long hiatus and recent turbulence in the stock market.
"However, how fast the banks can roll out the support depends on their ability to maintain financial sustainability," he said.
The support package, approved under the 15th National Assembly's Decree No 43/2022, is the first to use State funds to support post-pandemic economic recovery through commercial banks. It was designed to include and grant capital access as well as low-interest loans to small-to-medium sized enterprises (SMEs), cooperatives and economic households.
The package, said to be working in tandem with current stimuli, aims to help businesses and households resume business operations, restore supply and demand and jumpstart the economy, according to the central bank.
During the meeting, the SBV asked local authorities to closely coordinate with commercial banks to ensure the process's transparency, fairness and efficiency. On the other hand, the central bank said it was to step up inspection and oversight to minimise abuses and exploitations of State capital.
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