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Wednesday, June 19, 2024

Extension proposed for low-interest loan package

The Saigon Times

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HCMC – Given the slow pace of disbursement of the two-percentage-point interest support package, the Government has suggested extending this loan program until the end of the year.

Speaking at the National Assembly’s plenary session on November 1, Minister of Planning and Investment Nguyen Chi Dung said the disbursement of the loan interest support package, as part of the nation’s economic recovery program under National Assembly Resolution 43, has been progressing slowly.

He said that as of late October, only VND873 billion of the VND40 trillion allocated for the package has been disbursed, accounting for just 2.3% of the total value.

The Government has therefore sought the National Assembly’s approval to extend the deadline for the support package until the end of this year. Any allocated funds that remain undisbursed by year-end will be canceled.

The Government will propose alternate fiscal policies to support businesses, including the extension of value added tax (VAT) reduction, and exemptions on fees and charges.

Minister Dung highlighted psychological factors and challenges in interpreting the regulations as the primary causes for the slower-than-expected disbursement of the package. He emphasized that challenging economic conditions in recent times have hindered eligible businesses, as well as those that do not meet the support package’s requirements, from borrowing funds from banks.

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