Gia Lai-Kon Tum Regional Development Bank Branch implements the State's investment credit policy

Accordingly, the Development Bank is a policy bank established by the Prime Minister; operates not for profit to implement the State's socio -economic policies; is guaranteed by the State's solvency; is exempt from paying taxes and state budget payments; is not required to maintain compulsory reserves; and is not required to participate in deposit insurance.

In addition to the charter capital provided by the State budget, the Development Bank is given priority and designated by the State to mobilize capital from issuing bonds guaranteed by the Government ; borrowing from Vietnam Social Security; borrowing from financial and credit institutions...

The Development Bank will operate in the fields of lending according to the State's investment credit policy; credit guarantees for small and medium-sized enterprises borrowing capital from commercial banks according to the Prime Minister 's decision; re-lending ODA loans and foreign preferential loans of the Government; performing lending activities according to trust authorization, allocating capital according to trust authorization; guarantees according to trust authorization...

Previously, on November 7, 2023, the Government also issued Decree No. 78/2023/ND-CP regulating State investment credit implemented by the Development Bank. After more than a year of implementing this regulation, the Development Bank has officially marked its return to the monetary and financial market as a State sponsor of long-term capital for major projects in the country; operating towards good practices of commercial banks, with the characteristics of a policy bank in the field of economic investment.

For the two provinces of Gia Lai and Kon Tum, there is much potential in the field of developing electric power (hydropower, wind power, solar power), providing clean water, planting economic forests, socio-economic infrastructure projects... all of which are priority subjects for State investment credit funding from the Gia Lai-Kon Tum Regional Development Bank Branch.

In particular, the interest rate of the Development Bank is determined based on a reference of 85% of the average lending interest rate of commercial banks; the loan period depends on the characteristics of production, business, capital recovery and debt repayment capacity of each project (no limit on the loan time frame). This will be an advantageous credit channel to attract and call for investment projects in potential areas of the locality in industries with large capital needs and long capital recovery cycles.

Source: https://baogialai.com.vn/chi-nhanh-ngan-hang-phat-trien-khu-vuc-gia-lai-kon-tum-thuc-hien-chinh-sach-tin-dung-dau-tu-cua-nha-nuoc-post322228.html