Supporting industries to get loan interest support from HCMC
Products for supporting industries are on display at an exposition. HCMC will provide projects in support industries with loan interest support of up to VND200 billion per project - PHOTO: VAN NAM
HCMC - The HCMC government has issued a decision on provision of financial aid for investors committed to industrial production and supporting industries, with each project eligible for up to VND200 billion in loan interest support.
The interest rate will not exceed the average rate for 12-month deposits in Vietnamese dong at the HCMC branches of Agribank, BIDV, Vietcombank and VietinBank, plus a service fee of 2% a year, says the decision that came out last week.
For foreign currency loans, the city budget will offer interest rate support based on the exchange rate announced by the central bank at the time of payment.
The maximum duration of loan interest support for a project will be seven years from the date of the first disbursement. An interest-subsidized loan will be restricted at 70% of basic capital construction cost as defined by the Ministry of Construction or 85% of technology and equipment cost.
For projects in need of more than VND200 billion in loan interest assistance or more than seven years of support, the city government will approve them on a case-by-case basis.
The city government is responsible for deciding whether or not to offer a project loan interest support subsidy. The Department of Industry and Trade is in charge of receiving requests for loan interest support and coordinating with other agencies to consider them before they go before the municipal government.
The decision will take effect on March 26, 2017.