Government Orders to Accelerate Interest Rate Support Program | National

Deputy Prime Minister Le MInh Khai speaks during the event. Disbursement of the interest rate subsidy program remained limited after almost three months of implementation. — Stock Photo

Deputy Prime Minister Le MInh Khai on Wednesday ordered agencies to resolve problems that arose during the implementation of the government’s 2 percent interest rate support program to speed up the policy.

This decision was taken after authorities reported that disbursement of the VND 40 trillion program remained limited after nearly three months of implementation.

In a meeting on Wednesday, the State Bank of Vietnam (SBV) announced that commercial banks had lent nearly VND 4.1 trillion to nearly 550 customers under the program, including VND 1.1 trillion. VND in the form of interest rate assistance.

Commercial banks attributed the limited disbursement to a number of difficulties, such as determining program beneficiaries. The banks explained that many production and business households take bank loans but do not register as business households, so they are not eligible for assistance.

To expedite the disbursement of the business support program in accordance with the law, during the meeting, the Deputy Prime Minister requested the SBV, the Ministries of Finance, Planning and Investment and Justice, as well as the Government Office to review the regulations related to industries, beneficiaries and the loan conditions of the program to quickly adjust or propose more feasible and effective measures to the competent authorities.

He instructed the SBV to organize a conference with the participation of commercial banks next week to receive their comments. Other relevant ministries, including planning and investment, finance and justice, will also have to send officials to attend the event to guide and explain the program regulations to commercial banks.

The SBV is also to set up soon a number of working delegations with the participation of the relevant ministries and sectors to investigate the results of the implementation of the program with commercial banks in order to quickly take measures to manage the difficulties and the obstacles raised during the implementation.

In addition, the SBV must continuously coordinate with the agencies concerned to promote the program in order to make effective access to the support policy for the beneficiaries in accordance with the legal provisions.

In May this year, the government issued Decree No. 31/2022/NĐ-CP on the State Budget Interest Rate Subsidy Program for Business Loans. The program, which is a large-scale policy with the participation of many commercial banks, uses the state budget to help reduce borrowing costs for companies, cooperatives and business households to help them overcome difficulties to stabilize and develop production and business. Therefore, the implementation of the policy must ensure fairness, publicity and transparency to identify the right beneficiaries.

Beneficiaries of the policy are businesses, cooperatives and commercial households in the sectors of aviation, transport, warehousing, tourism, accommodation and food services, education, agriculture, forestry, fishing, manufacturing and processing industry, software and computer programming, information services and social and worker housing developers.

Under this policy, the state budget will fully and promptly allocate funds for the interest rate subsidy of 2% per annum for commercial banks to provide loans to customers.

Commercial banks will stop supporting interest rates after December 31 next year or when the funding source is exhausted, whichever comes first.

The period of interest rate support is from the date of disbursement of the loan until the customers repay the principal and/or interest of the loan, as agreed between the commercial banks and the customers, but does not exceed 31 December next year.


Ryan H. Bowman