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Saturday, February 4, 2023

Tough screening procedures hinder soft-loan rollout

By Thai Huy

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HCMC – Tough inspection and screening procedures have hindered the rollout of a financial aid package with an interest rate discount of two percentage points, the Ministry of Finance said.

According to commercial banks, the package amounted to VND850,000 billion in 2022, targeting 750,000 borrowers. However, only 100,000 of them were eligible for the package; 7% of them took out loans, 26% remained hesitant and the rest showed no interest.

Loans taken out under the package totaled VND30,000 billion, while outstanding loans with an interest reduction were just a fraction of VND850,000 billion, at VND23,000 billion.

Disbursement has been far slower than expected, with just over VND78 billion in late 2022.

Paperwork is a major source of discouragement. Businesses worried that they might be subject to inspections if problems arise, the Vietnam News Agency reported, citing data from the Department of Banking and Financial Institutions with the MOF.

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