Traders, trading households and companies joining the price stabilization program in HCMC can borrow money from Saigon Thuong Tin Commercial Bank (Sacombank) with an annual preferential rate of 10% over a period of six months to one year.
According to the lender, the total amount of its preferential loans is VND1 trillion which is effective until January 31, 2013 or until when the amount is used up.
The special credit package primarily targets enterprises joining the city’s price stabilization program for a maximum lending period of six months with an interest rate of 10% annually for the first three months.
Six corporate members of the program on Tuesday inked credit agreements with Sacombank branches under the witness of Le Ngoc Dao, deputy director of the city’s Department of Industry and Trade serving as the program’s organizer, and deputy director Nguyen Hoang Minh of the central bank’s HCMC Branch.
Meanwhile, trading households and vendors at traditional markets in the city are also able to gain access to the bank’s low-interest loans when meeting requirements, with their booths used as collateral. The lending term is up to one year with a yearly rate of 10% for the first three months.
Management boards of 36 traditional markets and commercial centers including three wholesales markets on Tuesday signed credit agreements with Sacombank branches. Right after the signing ceremony, staff members of Sacombank will come to every market to instruct traders to apply for loans and to receive the applications from them, Dao said.
Minh of the central bank said local banks now are ready to provide loans to companies, explaining the central bank has directed lenders to promptly support enterprises.
However, the disbursement pace still depends on local enterprises as many firms are hesitant to take out loans given the current mounting inventories and tightened lending conditions.
The VND200-trillion credit package that local lenders have set aside for companies to prepare for the upcoming Lunar New Year has had over VND77 trillion disbursed as of now, Minh said.
A number of banks have relaxed lending conditions for vendors at traditional markets, taking the vendors’ stands as collateral, he noted. The lenders are working with authorities of markets to find borrowers as well, he said.
The Saigon Times Daily