VNBusinessNews.com – The nation’s banks have so far disbursed VND414.08 trillion (US$21.8 billion) worth of Government-subsidised preferential loans at a 4 per cent interest rate since the programme started in February.
By the end of last week, total capital injected into the economy through the programme was down VND1.81 trillion ($95 million), or 0.43 per cent, over previous week. Last week, money lent under the scheme was down 0.20 per cent on the week before.
According to the State Bank
of Viet Nam, State-owned banks and central credit unions have disbursed the lion’s share of money under the Government-sponsored scheme, lending VND276.87 trillion ($14.57 billion), down 0.88 per cent against the first week this month.
Private commercial banks disbursed VND108.47 trillion ($5.71 billion) worth of loans under the programme, up 0.58 per cent, while foreign-invested banks and joint-venture banks loaned another VND20.4 trillion ($1.07 billion), up 1.83 per cent. Finance companies handed out the remaining VND8.3 trillion ($436 million), down 4.03 per cent.
The largest recipients of subsidised loans, designed to spur production and consumer spending, were private enterprises (that were not household businesses), which accounted for 68.8 per cent of the total. A further 16 per cent was lent to family firms, while the remaining 15 per cent was lent to State-owned enterprises.
Subsidised short-term loans are to be paid off by the year-end, while medium-and long-term loans expire next year.
The fall in the amount of money being lent under the Government’s scheme is being seen as a cautious response by enterprises to the central bank’s decision to lift the prime rate to 8 per cent from 7 per cent, which boosted bank lending by 1.5-2 percentage points to 12 per cent per year.