THE SOCIALIST REPUBLIC OF VIET NAM
Government News
Gov’t continues interest rate subsidies for long and medium loans
VGP – In 2010, the Government pledges to continue giving interest rate subsidy of 2% per year to medium and long-term loans which are used to promote production and business activities.
The Government’s decision aims
at pushing economic recovery and sustaining macro-economic stability.
Interest rate subsidies help enterprises to
slash down cost price of their products
The longest term for the
subsidies is 24 months since the loans are disbursed in 2010.
The subsidies will be
offered to long and medium loans in Vietnamese currency taken from commercial
banks to serve agriculture and forestry; fisheries; processing industry; science
and technology; and purchase of agro-forestry, fishery products and salt.
Some credit organizations
which provide loans may receive subsidies. These institutions include State
commercial banks, commercial joint-stock banks, financial companies, joint-venture
banks, Việt Nam-based branches of foreign banks, wholly foreign-funded banks, and
central people’s credit funds.
Earlier, in the context of
the global economic downturn in 2009, the PM decided to provide interest rate
subsidies of 4% for similar loans.
By Hoàng Phương