City asks banks to offer firms preferential rates
City asks banks to offer firms preferential rates
HCM City's People's Committee has assigned banks in the city to spend VND300 trillion (US$13.7 billion) this year to offer local enterprises preferential interest rates, Le Van Khoa, deputy chairman of HCM City's People's Committee, has said.
The assignment is part of a programme connecting banks and enterprises that has been operating for three years.
The target this year would be five times higher than the figure set in 2015, according to Khoa.
Responding to the assignment, 18 banks in the city on Friday signed agreements with local enterprises to loan them VND211.5 trillion ($9.7 billion) and US$15 million at an interest rate of no more than 7 per cent per year for short-term and 8-10 per cent per year for medium- and long-term loans.
Khoa said that this year the priority would be given to small- and medium-d enterprises and companies operating in the supporting industry.
Other companies benefiting from the programme are exporter and firms in high-tech agriculture and rural development; and companies that will take part in the city's price stabilisation programmes in the 2016-20 period, he said.
HCM City has carried out many programmes to support local enterprises to overcome difficulties, and the programme connecting banks and enterprises has been implemented well.
The programme was organised with the main aim of assisting local enterprises to mobilise capital at preferential interest rates to expand their business.
For more than three years, the programme has mobilised nearly VND241 trillion ($11 billion), giving loans to over 9,200 customers.
In 2015 only, over VND173 trillion ($7.9 billion) was poured into the programme while the target was only VND60 trillion.
The programme had been useful for local companies, said Pham Xuan Hong, chairman of the HCM City Association of Garment – Textile – Embroidery – Knitting.
Through the programme, companies had been able to tap into bank loans, while relations between companies and banks had improved, he said.
"The companies now have more capital to expand business and exports."
