The Bank for Agriculture and Rural Development of Vietnam (Agribank) has been approved by the State Bank of Vietnam for a 2% per year interest rate support limit of VND 2,500 billion in 2022 for the beneficiaries, interest subsidy.
Decree 31/2022/ND-CP and Circular 03/2022/TT- NHNN issued on May 20, 2022 stipulating the interest rate support from the State Budget for loans denominated in Vietnam dong generated from lending activities of commercial banks to customers who are enterprises, cooperatives, and business households.
The 2% interest rate support program from the State budget is a solution to create favorable conditions for people and businesses in industries and fields that are heavily affected by the COVID-19 pandemic in accessing capital sources at low cost, taking advantage of opportunities to develop production and business activities in the new situation, contributing to stimulating both supply and demand sides, creating a foundation for strong economic recovery and growth.
Immediately after the Decree and Circular were issued, Agribank actively prepared all conditions to well implement the interest rate support program. Right from the beginning in April 2022, the General Director of Agribank established a Team to develop regulations on interest rate support, and at the same time held conferences to discuss and disseminate the draft regulation on interest rate support with the participation of all nearly 1,000 branches in 63 provinces and cities nationwide. Thereby thoroughly grasping and emphasizing the importance of effectively implementing the interest rate support program to all units in the system.
Since the time customers received interest rate support, Agribank has disbursed nearly VND 100,000 billion for beneficiaries of this interest rate support period.
Enterprises, cooperatives and business households eligible for interest rate support must have the purpose of using loan capital in one of the registered business sectors specified in the Prime Minister’s Decision No. 27/2018/QD-TTg Prime Minister including: aviation, transportation, warehousing, tourism, accommodation services, catering, education and training, agriculture, forestry and fisheries, processing industry, manufacturing, publishing software.
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