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Vietnam Business » Vietnam Financial News » Subsidised loans pump $14.4b into economy

Subsidised loans pump $14.4b into economy

State-owned banks and central credit unions have made the lion’s share of subsidised loans, disbursing VND187.66 trillion ($10.6 billion) under the programme to inject funds into the economy and spur production and consumer spending. Private commercial banks had made VND55.24 trillion ($3.12 billion) worth of loans under the programme, while foreign-invested banks and joint venture banks have loaned another VND11.04 trillion ($623.84 million).

The nation’s banks have made about VND254.9 trillion (US$14.4 billion) worth of loans to date at the Government-subsidised interest rate of 4 per cent, according to the State Bank of Viet Nam. In a conference held in Ha Noi last week to discuss the subsidised loan programme, many commercial banks confirmed that they were quick to approve subsidised loans for eligible customers but they would not loosen lending criteria or increase risk simply to make more loans under the programme. The programme was expected to inject another VND165.1 trillion ($9.33 billion) into the economy this year, for a total of VND420 trillion ($23.73 billion).

Vietnam Business And Financial News Network. Source [vietnamnews]

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