“Enterprises do not have projects to access such loans, not because banks do not have funds for them,” Lich told the “Post-crisis development opportunities” seminar organized by VietFund Management.
The Government on April 1 kicked off a stimulus program to offer medium and long-term loans for enterprises to consolidate and restructure their business, with the State bearing four percentage points in the commercial interest rate.
This stimulus program is different from the first one, which was effective in early February, offering loans for almost all enterprises impacted by the global economic turmoil. Until now, as much as VND400 trillion, or some US$22 billion, has been disbursed under the first program.
Lich said that those with long-term business strategies could immediately apply for the long-term subsidized loans while others would only see opportunities evaporated.
However, Lich urged enterprises not to skip the credit as these are opportunities for them to renovate technology, train human resources, and seek new markets. He hoped this stimulus package to last till the end of next year or longer so that many enterprises can have enough time to set up business projects.
Mentioning the amount of money available under this package, Lich said the Government has yet to calculate the absorbing capacity of the economy. However, the nation has set aside VND20 trillion for the package and would announce the number next year.
Lich rejected opinions that the package was meant to save State-run companies. A report of the central bank shows that State-owned enterprises accounted for 37% of the fund, and the figure is reliable as it is based on banks’ customer lists, he said.
The NA deputy delegation has plans to meet with some banks and 20 enterprises that have taken out the largest amount of subsidized loans to learn about their operation. The HCMC branch of the central bank has given the list of 20 enterprises with most of them State-run exporters. The Southern Food Corporation borrowed the largest sum to buy rice, according to Lich.
Concerning the economic situation in the last six months of 2009, he said the country could obtain a gross domestic product (GDP) growth rate of 5% and curb inflation at around 7% or 8%.
- Hanoi Enterprises Benefit from Demand Stimulus Package
- Short-term Stimulus Package Is No Longer Suitable
- Stimulus packages continue to support businesses
- Second Stimulus Package And Microeconomic Impacts
- Pros and cons of second stimulus
- Farmers still go a long way
- Banks give $4.6b in subsidised loans
- Efficiency is key in ensuring success of stimulus packages
- Low-interest loans had limited economic impact: auditors