Eximbank offers loans at 8.4 percent interest rate

The Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) is introducing soft loans at an interest rate of 8.4 percent per year for Ho Chi Minh City based textile and garment businesses, said Nguyen Van Nam, Deputy Manager of the Business Credit Department of Eximbank. Mr Nam made this announcement at a workshop entitled “Solutions of Financial Support for Import-Export Businesses” which was held on 26 July 2008.    

Loans applied for both in Vietnamese dong and US dollars have interest rates that are more competitive than previous rates that were up to 20 – 21 percent per year (for loans in VND) and approximately 11 -12% per year (for loans in USD) that were applied by various banking institutions.

To get approval for Eximbank’s soft loans, importers and exporters are required to have a source of foreign currencies for payment and sale via the bank.  Reportedly, Eximbank has reserved about VND2,000 billion and US $100 million for this initiative.