Loans for high quality rice in the Mekong Delta

Headquarters of the State Bank of Vietnam.

Accordingly, the subjects participating in the Program include: credit institutions and individuals, farming households, cooperative groups, cooperatives, cooperative unions, and enterprises participating in the linkage of production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta (rice linkage).

Credit institutions lend in 02 phases. During the pilot lending phase (from the time of implementation until the end of 2025 or until the adjustment time approved by the competent authority), the pilot lending bank is the Vietnam Bank for Agriculture and Rural Development (Agribank). In addition to Agribank, other credit institutions participating in the lending program must comply with the contents of the program and have a written report to the State Bank of Vietnam on their participation in the program.

During the lending expansion phase (after the end of the pilot phase until the end of 2030), credit institutions will lend according to the contents of the Program.

Notably, credit institutions provide loans to serve short, medium and long-term capital needs of all stages (production, purchasing, processing and consumption) in the rice linkage using the credit institutions’ self-mobilized capital. In which, the loan amount is agreed upon by the credit institution and the customer in accordance with the provisions of law.

Credit institutions proactively balance capital sources and reduce costs to consider applying a loan interest rate that is at least 1% lower per year than the loan interest rate of the corresponding term currently applied to customers of the same term/same group (according to customer objects or credit ratings...), based on customer policies, instructions of credit institutions and other regulations of credit institutions in each period. In case the borrower no longer participates in the rice linkage as determined by the People's Committee of the province or city in the Mekong Delta, the credit institution shall transfer the loan to a regular loan without applying the loan interest rate of the Program.

In the document, the State Bank of Vietnam also requested credit institutions to issue instructions and organize the implementation of the unified lending program throughout the system. Agribank in particular must urgently issue instructions and organize the implementation of the pilot program throughout the system after the instructions in this document are available.

Review, appraise and decide on lending to customers in accordance with the provisions of law on lending and be responsible for their lending decisions; classify debts, set up provisions and handle risks of loans under the Program in accordance with current regulations.

Instruct customers borrowing capital in the rice linkage to open accounts at credit institutions and conduct monetary transactions related to the rice linkage through these accounts; Promptly report to the State Bank of Vietnam any difficulties and problems arising in the lending process under the Program.

On the same day, the State Bank of Vietnam issued Document No. 8363/NHNN-TD to the People's Committees of provinces and cities in the Mekong Delta region (Can Tho, An Giang, Kien Giang, Dong Thap, Long An, Soc Trang, Bac Lieu, Tra Vinh, Hau Giang, Ca Mau, Tien Giang, Vinh Long) requesting coordination in implementing a number of contents:

The pilot phase from now until the end of 2025 will be with Agribank as the main lending bank.

Identify, list and announce specialized areas, linkages and entities participating in rice linkages in the area according to Decision 1490/QD-TTg under the guidance of the Ministry of Agriculture and Rural Development; at the same time, send to the Ministry of Agriculture and Rural Development for synthesis and general announcement so that credit institutions can access, consider and decide on lending. Promptly notify the Ministry of Agriculture and Rural Development of cases where entities are no longer participating in rice linkages.

Determine and publish on the electronic information page of the province or city the actual cost norms for implementing the rice production stage in the rice linkage according to the standards in Decision 1490/QD-TTg (published for each crop or each year depending on the conditions of each locality) for credit institutions to refer to in determining the loan level for customers.

Monitor, urge and supervise the subjects participating in rice linkage in implementing commitments during the implementation of the Project; Consider solutions in case the parties participating in the linkage do not comply with the agreed commitments.

The State Bank of Vietnam also issued Document No. 8365/NHNN-TD to the Ministry of Agriculture and Rural Development requesting coordination in implementing a number of contents: Issuing technical and economic norms for producing high-quality and low-emission rice in the Mekong Delta according to Decision 1490/QD-TTg; Synthesizing and jointly announcing specialized areas, linkages and entities participating in linkages in production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta according to the provisions of Decision 1490/QD-TTg for credit institutions to access, consider and decide on lending; Coordinating with the State Bank to handle difficulties and problems arising in the implementation of this Program.

According to nhandan.vn

Source: https://www.baokiengiang.vn/thoi-su/cho-vay-lien-ket-lua-gao-chat-luong-cao-vung-dong-bang-song-cuu-long-22813.html