Banks to provide $19.5b preferential credit package for infrastructure, digital technology businesses

Banks to provide $19.5b preferential credit package for infrastructure, digital technology businesses

The commercial banks said they will participate in the package to show the proactiveness and determination of the sector in supporting businesses and promoting economic growth.

Deputy Governor of the State Bank of Vietnam Đào Minh Tú speaks at the event. —  Photo sbv.gov.vn

Commercial banks have agreed with the Government to join in a VNĐ500 trillion (US$19.5 billion) preferential interest rate credit package to support businesses in the infrastructure and digital technology sectors.

At a State Bank of Vietnam (SBV)’s meeting with commercial banks on Thursday, to discuss the direction of implementing the credit package, the banks said they will participate in the package to show the proactiveness and determination of the banking sector to support businesses and promote economic growth.

The Deputy General Director of Agribank, Phùng Thị Bình, affirmed that the bank is ready to support enterprises, especially in terms of interest rates, but there should be detailed regulations in lending so that banks can confidently get involved.

The General Director of Vietcombank, Lê Quang Vinh, said the banking industry identifies credit as an effective support tool for businesses. He suggested that it is necessary to build a mechanism for capital contribution and benefit sharing, instead of applying traditional lending methods as currently, to make it easier for banks to participate in the package helping businesses in the infrastructure and digital technology sectors, especially in innovative technology.

Deputy Governor of the SBV Đào Minh Tú acknowledged the consensus and positive response from the banks.

In the face of current difficulties and challenges, especially the impact of the new US tax policy, the implementation of the credit package and timely support policies is considered very urgent for businesses.

The State Bank encourages the expansion of the participation of more banks, especially State-owned commercial banks, which need to promote their leading role and demonstrate greater responsibility to the economy.

However, Tú noted, loans of the credit package must still adhere to credit requirements.

Tú requested that commercial banks proactively calculate and set aside capital for the package, and promptly register to participate.

Regarding lending interest rates, Tú said that commercial banks proactively determine and publicise the applicable interest rates and interest calculation methods for customers in each period, in the spirit of supporting customers to reduce capital costs in order to contribute to removing obstacles and promoting businesses to invest in infrastructure and digital technology.

The package will last until 2030 or until the capital is disbursed entirely, whichever comes first.

Banks should promote the issue widely disseminate policies so that potential beneficiaries can hear about it and participate.

Banks must report on the implementation of the package to the SBV quarterly.       

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