Implementing preferential credit program for the 1 million hectare low-emission rice project

(PLVN) - To effectively implement the Preferential Credit Loan Program, the State Bank has proposed that the Ministry of Agriculture and Rural Development promptly synthesize and publicly announce specialized areas, linkages and entities participating in linkages in production, processing and consumption of products under the project so that credit institutions can access, consider and decide on lending.

11/07/2024 17:19

Permanent Deputy Governor of the State Bank of Vietnam speaks at the conference

(PLVN) - To effectively implement the Preferential Credit Loan Program, the State Bank has proposed that the Ministry of Agriculture and Rural Development promptly synthesize and publicly announce specialized areas, linkages and entities participating in linkages in production, processing and consumption of products under the project so that credit institutions can access, consider and decide on lending.

On November 7, 2024, the State Bank of Vietnam (SBV) coordinated with the Ministry of Agriculture and Rural Development of Vietnam (MARD), Dong Thap Provincial People's Committee, and Agribank to organize a Conference to deploy the Preferential Credit Program to implement the Project of 1 million hectares of high-quality, low-emission rice in the Mekong Delta (MD).

Speaking at the conference, Mr. Dao Minh Tu - Permanent Deputy Governor of the State Bank of Vietnam said that the State Bank of Vietnam has developed a mechanism and implemented a preferential credit program for components participating in the rice production chain, especially in the 1 million hectares of high-quality rice project to reduce emissions. In which, Agribank is the main bank participating in the project phase 1 (pilot until the end of 2025) and phase 2 expands the participation of other credit institutions (CIs). CIs proactively balance capital sources, reduce costs to consider applying a lending interest rate that is at least 01%/year lower than the lending interest rate of the corresponding term currently applied to customers of the same term/same group.

Currently, based on the content of the lending program framework under the direction of the State Bank, Agribank has issued internal guidelines to pilot the lending. However, the State Bank encourages other credit institutions to register for lending during the pilot phase and requests banks to prepare guidelines for immediate implementation during the expansion phase.

To effectively implement the Loan Program, the State Bank has proposed that the Ministry of Agriculture and Rural Development promptly synthesize and publicly announce specialized areas, linkages and entities participating in linkages in production, processing and consumption of products under the project for credit institutions to access, consider and decide on lending; the People's Committees of 12 provinces and cities in the Mekong Delta region identify, list and publicly announce specialized areas, linkages and entities participating in linkages in production, processing and consumption;

At the same time, the People's Committees of the provinces send the Ministry of Agriculture and Rural Development a summary and general announcement for credit institutions to access, consider and decide on lending. In addition, promptly notify the Ministry of Agriculture and Rural Development of cases where entities are no longer participating in rice linkages; assign local specialized agencies to issue technical and economic norms for producing high-quality and low-emission rice.

In the coming months, when localities complete the announcement of specialized areas, linkages and entities participating in rice linkages in the area according to the project, and the Ministry of Agriculture and Rural Development develops and issues technical and economic norms for high-quality rice production, as well as announces the list of specialized areas of the Project, Agribank branches can approach, consider and decide to lend to each model.

Regarding Agribank, Deputy Governor Dao Minh Tu requested to promote lending under the Program; identify the implementation of lending in the pilot phase as a political task; Strengthen communication and information work in the Mekong Delta region so that corporate customers, cooperatives, and farming households know and access the policy. Timely report to the State Bank of Vietnam any difficulties and problems arising in the lending process under the Program. Other banks consider registering for lending in the pilot phase and prepare guidance documents for immediate implementation in the expansion phase.

Source: https://baophapluat.vn/trien-khai-chuong-trinh-tin-dung-uu-dai-cho-de-an-1-trieu-ha-lua-phat-thai-thap-post531160.html