Farmers apply for loans at a branch of Agribank in the central province of Quang Binh (Photo: VNA)Hanoi (VNA) - Commercial banks can offer loans at preferential interest rateof less than 7 percent per year for high-tech agriculture projects.
DeputyGovernor of the State Bank of Vietnam (SBV) Dao Minh Tu on February 27 said several commercial banks have positively responded and are pledging to setaside some 100 trillion VND (4.4 billion USD) loans for high-tech agricultureat a preferential rate of less than 7 percent depending on the financial statusof each bank.
Tusaid commercial banks are very interested in high-tech agriculture. Followingthe Prime Minister’s instruction on supporting high-tech agriculturedevelopment late last year, SBV has, so far, instructed the banks to applypreferential loans to high-tech and clean agricultural projects.
Directorof SBV’s Credit Department Nguyen Quoc Hung also said the central bank isworking with the Ministry of Agriculture and Rural Development and otherrelevant agencies to establish specific criteria to classify agricultural firmsthat apply high-tech and produce clean agricultural products to be able tooffer the preferential lending programme.
Accordingto Hung, under the preferential lending programme on agricultural and ruraldevelopment, the central bank will provide credit institutions refinancingprogrammes.
Besidesthis, the central bank will also support credit institutions by reducing theirreserve requirement ratio. The reserve requirement ratio applicable for creditinstitutions whose outstanding loans for agriculture and rural developmentaccounting for 40-70 percent of their total outstanding loans will be equal toone fifth of the normal ratio set by the central bank. The ratio will bereduced to one twentieth for institutions whose outstanding loans foragriculture and rural development are more than 70 percent of their totaloutstanding loans.
Accordingto SBV’s statistics, last year, the country’s total outstanding loans rose14.93 percent against the previous year to more than 5.35 quadrillion VND, ofwhich agriculture, forestry and fishery industries reported a rise of some 16 percent.
Latelast year, the Government pledged to offer preferential policies on land,financing and technology to farmers and localities engaged in high-techagriculture. Prime Minister Nguyen Xuan Phuc said the five largest commercialbanks “must create the best conditions to serve farmers, organisations andlocalities wanting to develop high-tech agriculture.”
In Vietnam, 70 percent of the population worksas farmers, but agricultural production contributes only 20 percent to GDP. Indeveloped nations, only 2-4 percent of the population work as farmers, but theycontribute up to 40 percent of GDP.
Only 4,000 enterprises out of 600,000 companies in the country invest inagriculture.-VNA
DeputyGovernor of the State Bank of Vietnam (SBV) Dao Minh Tu on February 27 said several commercial banks have positively responded and are pledging to setaside some 100 trillion VND (4.4 billion USD) loans for high-tech agricultureat a preferential rate of less than 7 percent depending on the financial statusof each bank.
Tusaid commercial banks are very interested in high-tech agriculture. Followingthe Prime Minister’s instruction on supporting high-tech agriculturedevelopment late last year, SBV has, so far, instructed the banks to applypreferential loans to high-tech and clean agricultural projects.
Directorof SBV’s Credit Department Nguyen Quoc Hung also said the central bank isworking with the Ministry of Agriculture and Rural Development and otherrelevant agencies to establish specific criteria to classify agricultural firmsthat apply high-tech and produce clean agricultural products to be able tooffer the preferential lending programme.
Accordingto Hung, under the preferential lending programme on agricultural and ruraldevelopment, the central bank will provide credit institutions refinancingprogrammes.
Besidesthis, the central bank will also support credit institutions by reducing theirreserve requirement ratio. The reserve requirement ratio applicable for creditinstitutions whose outstanding loans for agriculture and rural developmentaccounting for 40-70 percent of their total outstanding loans will be equal toone fifth of the normal ratio set by the central bank. The ratio will bereduced to one twentieth for institutions whose outstanding loans foragriculture and rural development are more than 70 percent of their totaloutstanding loans.
Accordingto SBV’s statistics, last year, the country’s total outstanding loans rose14.93 percent against the previous year to more than 5.35 quadrillion VND, ofwhich agriculture, forestry and fishery industries reported a rise of some 16 percent.
Latelast year, the Government pledged to offer preferential policies on land,financing and technology to farmers and localities engaged in high-techagriculture. Prime Minister Nguyen Xuan Phuc said the five largest commercialbanks “must create the best conditions to serve farmers, organisations andlocalities wanting to develop high-tech agriculture.”
In Vietnam, 70 percent of the population worksas farmers, but agricultural production contributes only 20 percent to GDP. Indeveloped nations, only 2-4 percent of the population work as farmers, but theycontribute up to 40 percent of GDP.
Only 4,000 enterprises out of 600,000 companies in the country invest inagriculture.-VNA
VNA
