New Decree Facilitates Vietnam Farmers to Get More Credits
Farmers and enterprises will have easier access to loans at commercial banks without collaterals to boost agricultural and rural production, the State Bank of Vietnam (SBV) said on its website, citing a new decree that took effect from Jun 30.
Under the new decree, maximum unsecured credit lines would be increased by five folds to between VND50 million and VND500 million, the central bank noted.
A statistics from the SBV has indicated that local banks had lent VND316 trillion to the rural and agricultural production to date, accounting for 16.7% of their total outstanding loans. The loans were only VND34 trillion in 1998.
Agribank, Vietnam Bank for Social Policy (VBSP) and BIDV are pioneers in providing credits to the area so far.
Cao Duc Phat, minister of Agriculture and Rural Development, was quoted by the Lao Dong newspaper as saying that an annual credit growth of 6% is required to maintain average yearly agro-fisheries and forestry growth of 1%.
Cumbersome lending procedure currently remains a major reason hindering domestic farmers to borrow funds from commercial banks, Phat added. (SBV, Banking Times)
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