Ho Chi Minh City

Businesses in HCMC get more than VND22 trillion in low interest loans

SGGP
So far 3,229 businesses in HCMC have got low interest loans with the total capital of VND22,253 billion (US$955.21 million) under the Banks - Businesses Connection Program implemented since the beginning of 2020, said director of the city Department of Industry and Trade Pham Thanh Kien on June 26.

Many businesses in HCMC have been making effort to maintain production and increase market share (Photo: SGGP)

Many businesses in HCMC have been making effort to maintain production and increase market share (Photo: SGGP)

The program has been attended by 12 commercial banks that register a credit package totaling VND274.45 trillion ($10.63 billion) to assist businesses.
The package focuses on solving difficulties for enterprises and help them get bank loans with suitable interest rate, specifically 6 percent a year for short term and 9 percent a year for medium and long term loans. Those affected by the Covid-19 pandemic are eligible for short term loans with the interest rate of 5.5 percent a year.
According to HCMC Business Association, the above interest rates are reasonable as many businesses have faced difficulties due to changes in material supply markets. In addition, the strong hike in material price has broken some global supply chains and reduced the number of export orders.
However, many businesses in need of loans have faced complicated administrative procedures. A survey on members of the association shows that over 50 percent of them have been unable to get access to the preferential loans. In the upcoming time, banks should speed up identification of borrowers, reduce administrative procedures and facilitate businesses’ production recovery, the association suggested.

By Ai Van - Translated by Ngoc Thanh

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