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Banks to guarantee funds for North-South expy project
The Saigon Times Daily
Wednesday,  Oct 2, 2019,13:45 (GMT+7)

Banks to guarantee funds for North-South expy project

The Saigon Times Daily

Vehicles travel on the HCMC-Long Thanh-Dau Giay Expressway, part of the North-South Expressway. Banks will guarantee funds for North-South expy project – PHOTO: ANH QUAN

HCMC – Banks will fund the North-South Expressway project, under the build-operate-transfer (BOT) format, Dao Minh Tu, deputy governor of the State Bank of Vietnam (SBV), told a press briefing on October 1.

Besides this, Tu noted that the relevant ministries and departments should issue detailed policies on BOT projects to avoid losses and mistakes in the placement of stations.

Speaking at the press conference to announce the central bank’s performance in the third quarter, Tu stated that the Government had decided to launch a bidding session for domestic investors to join the expressway project.

According to experts, bank loans will have to be discussed in detail when local investors get involved in the large-scale project, Tu remarked.

Tu pointed out that the bank loans needed for BOT traffic projects and expressways would reach trillions of Vietnamese dong.

Meanwhile, banks will find it hard to mobilize short-term funds and provide medium- and long-term loans in line with banking policies; each project often lasts for 10-15 years.

The capital for the Trung Luong-My Thuan Expressway project has been found, Tuoi Tre newspaper reported, citing Tu.

Banks should also offer loans for several BOT traffic projects in the northern region, such as the Chi Lang-Huu Nghi Expressway, which needs some VND8 trillion, according to Tu.

Speaking of interest rates, Tu said that from now until the year-end, lending interest rates will be kept unchanged.

The representative of SBV said the credit growth for 2019 will reach 14% as targeted. By September 24, Vietnam’s credit had expanded 8.64% against the end of 2018.

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