Lao-Viet Bank issues low interest loans to businesses
Lao-Viet Bank issues low interest loans to businesses
Lao-Viet Bank (LVB) has announced it will provide 800 billion kip (US$100 million) in low interest loans for local businesses this year to ease access to affordable finance, according to a senior bank official.
The announcement was made last week on the occasion of the bank's 16th anniversary and a loan signing ceremony by the bank's Managing Director Mr Doan Viet Nam.
“LVB has been making great improvements to Lao financial services over the past 16 years. The announcement of the concessional interest rates will ease financial difficulties for businesses in Laos,” he said.
In 2014, the bank offered special short-term low interest loans of 2.5 to 3 percent that had to be repaid within three months.
“This year, LVB has offered US$100 million (800 billion kip) in loans for enterprises with an extension period of the interest payment of six months,” Mr Doan said.
The loans are available for enterprises in the areas of processing, export and import, trade and services.
“We particularly look forward to providing loans for processing businesses and agricultural processed products in keeping with the government's economic development plan,” he said.
Interest will be charged at 8.5 percent for loans in local currency, while US dollar and Thai baht loans will be issued at 6.5 percent per year.
“This will enable our customers to reduce interest payments from US$1 million to US$1.3 million,” Mr Doan said.
The provision of loans will begin on July 1 and continue until the end of this year.
Minister of Finance Dr Lien Thikeo, Deputy Governor of the Bank of the Lao PDR Ms Vatthana Dalaloy and senior officials from the Embassy of Vietnam to Laos also witnessed the signing ceremony.
The bank currently has gross assets of almost US$800 million while its annual business growth rate stands at 30 percent.
