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Tuesday, July 23, 2024

Ministry wants borrowing conditions eased for soft loan package

By T. Dao

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HCMC – The Ministry of Planning and Investment has asked the central bank to ease borrowing conditions, streamline paperwork and help businesses cut borrowing costs by revising relevant regulations.

The proposal was made during a government meeting held on February 21 to find ways to remove hurdles to 2023 public investment disbursements and aid packages.

Government Decree 31, issued in May last year to use State money for loan interest support for businesses, cooperatives and household businesses, is aimed at accelerating the recovery of businesses and households impacted by Covid-19 through a credit package of VND40 trillion with an interest rate discount of two percentage points.

As of January 31, loans made under this package totaled a mere VND134 billion, so it is difficult for the package to achieve full disbursements this year, the ministry said.

It thus urged the State Bank of Vietnam to estimate the amount that can be disbursed by the end of the economic stimulus program and devise plans to handle the remainder.

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