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Wednesday, September 28, 2022

2% interest rate aid package worth VND40 trillion launched

The Saigon Times

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HCMC – The Government has issued a decree on a relief package worth VND40 trillion offering an interest rate of 2% for loans to enterprises, cooperatives and business households.

Enterprises that want to access the package must meet loan conditions in accordance with current laws on lending activities of credit institutions and foreign bank branches to customers.

In addition, loans under this interest rate support program are signed and disbursed between January 11, 2022, and December 31, 2023, only used for prescribed purposes and have not been supported by interest rates from the state budget under other policies.

According to the decree, the beneficiaries of such interest rate support are borrowers from the following sectors: aviation, transportation and warehousing; tourism; accommodation and food services; education and training; agriculture, forestry and fishery; manufacturing and processing; software publishing; computer programming and related operations; and information services.

The beneficiaries also include business sectors that carry out construction activities directly serving the above-mentioned economic sectors but excluding construction activities for real estate businesses. However, social housing projects, housing projects for workers and the renovation of old apartment buildings on the list compiled and announced by the Ministry of Construction are also applicable to the program.

Loans with an overdue principal balance and/or late payment interest balance are not eligible for interest support. The loans can only continue to receive interest support for the next interest payment terms after the customers have fully paid the overdue principal balance and/or the late payment interest balance. Besides, loans whose repayment term is rescheduled will not get any interest rate support for such extended periods.

The interest rate support is applied for interest repayment periods from the effective date of the Decree, May 20, 2022, to December 31, 2023. Commercial banks will stop providing interest rate support after December 31, 2023, or when the State Bank of Vietnam and the Ministry of Finance announce that the total interest rate support has exceeded the budget (interest rate support limit), whichever comes first.

The decree stated that commercial banks must provide interest rate support in compliance with the law and regulations and bring benefits to customers. The support program must ensure publicity, transparency, suitable subjects, the right purposes and avoid policy profiteering.

The interest rate support package worth up to VND40 trillion is part of the economic and social recovery and development program approved earlier this year, worth up to VND350 trillion, with several solutions and aid covering a variety of sectors.

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