Recently, bank branches in the province have implemented many preferential credit programs for the agriculture, forestry and fishery sectors. Thanks to that, many customers have had access to preferential capital sources for economic development.
Disbursement of thousands of billions of dong
Thuan fish cake production facility (Van Phu commune, Van Ninh district) is one of the production and business households that has early access to the loan program under Decree No. 31 dated May 20, 2022 of the Government on interest rate support from the state budget for loans of enterprises, cooperatives, and business households. Ms. Pham Thi Thuan - owner of Thuan fish cake production facility said that in October 2022, she received a loan of 2 billion VND from Agribank Van Ninh District Branch under Decree No. 31, with an interest rate reduced by 2% compared to the normal interest rate. The amount of interest rate support is more than 30.5 million VND. This preferential credit program has helped reduce part of the monthly interest rate so that the facility can reinvest in production. According to a report by the State Bank of Vietnam (SBV) Khanh Hoa Branch, as of October 31, bank branches in the area had provided 16 customers with interest rate support loans according to Decree No. 31, including customers operating in the fields of agriculture, forestry and fisheries; the total outstanding loan balance with interest rate support was over VND415.7 billion, the amount of interest supported was nearly VND7.9 billion.
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Customers transact at Agribank Van Ninh District Branch. |
The lending program for the forestry and fishery sector (credit package of 15,000 billion VND) is one of the preferential credit programs that has been effective in recent times. This program has a lending interest rate that is at least 1 to 2% lower per year compared to the average lending interest rate for the same term (short-term, medium-term, long-term) applied by the lending bank itself in each period. As of October 31, banks have disbursed 11,672 billion VND to individual customers and businesses serving production and business activities in the forestry and fishery sector.
In addition, a number of other preferential credit programs have also achieved positive results, such as: Lending capital under Decree No. 55/2015 of the Government and Decree No. 116/2018 of the Government (amending Decree No. 55) on credit policies for agricultural and rural development; lending capital under Resolution No. 30/2017 of the Government on encouraging the development of high-tech agriculture, clean agriculture, etc.
Continue to deploy
Mr. Do Trong Thao - Acting Director of the State Bank of Vietnam, Khanh Hoa Branch, said that in recent times, preferential credit programs for the agricultural, forestry and fishery sectors have been promptly and quickly implemented by banks. However, access to these preferential policies still faces some difficulties, the biggest of which is in terms of collateral. Decree No. 57 dated April 17, 2018 of the Government on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas stipulates that commercial banks are allowed to accept high-tech agricultural production works such as greenhouses, net houses, and irrigation systems as collateral. However, these assets have not been granted property certificates on land by competent authorities, causing difficulties in mortgaging assets for loans. In addition, agricultural, forestry and fishery production is subject to many risks of natural disasters, epidemics, unstable prices, and unstable markets, which affect the debt collection ability of credit institutions. Many customers do not meet the criteria of financial transparency, limited management capacity; business plans and projects, and construction loans are not systematic, so they do not meet the conditions for loans under the preferential program.
Currently, preferential credit programs for the agriculture, forestry and fishery sectors are still valid. Therefore, the State Bank of Vietnam, Khanh Hoa Branch, has directed credit institutions in the area to continue promoting the communication of these preferential credit programs to eligible customers; at the same time, balance capital sources, and focus growth on priority areas. On the other hand, credit institutions need to review and simplify processes and procedures, create favorable conditions for customers to access bank credit sources; strictly comply with legal regulations, not loosen credit granting conditions to ensure loan safety; and develop a variety of bank credit products suitable for each type and production and business needs of people and enterprises.
MAI HOANG
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