Vietnam Central Bank Pledges More Fund for Rural, Agri Production
The State Bank of Vietnam (SBV), the country’s central bank, will provide VND30 trillion to local commercial banks to re-lend to rural and agricultural producers.
SBV Governor Nguyen Van Giau was quoted by the newswire as saying that medium- and long-term loans will account for VND10 trillion, or 30%, of the total.
The move is part of measures that the central bank will implement to pump more funds into the economy to facilitate local production.
Others include a decision to cut compulsory reserve ratio for commercial banks which have boosted lending to agricultural and rural production. The decision is expected to be signed this week.
In early July, the central bank pumped VDN10 trillion under refinanced loans into Agribank to stimulate investments in rural areas. This is the first medium- and long-term loans given by the SBV over the last ten years.
The SBV decided to hold the base interest rate at 8% per annum in Aug, unchanged since last December. The refinancing and rediscount rates remains at 8% and 6% per annum, respectively, while the overnight rate on inter-bank market is 8%. (VnExpress)
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