Banks Allowed to Provide Loans to Oil Importers

Prime Minister Nguyen Tan Dung has assigned the Governor of State Bank of Vietnam to consider and determine the maximum loan for oil importers, which cannot exceed 15 per cent of lenders’ equities. The objective is to create favourable conditions for oil importers which are also wholesalers to raise more funds, thus lightening the financial burden for importing enterprises.

 

Under the Decree 55 issued in early April 2007, oil importers have been handed the authority to decide the retail price of petrol. The Government quit the role of price decision making and let oil traders to set prices based on specific input and cost calculation. Hence, easier access to loans is essential to oil traders.