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VIETNAM Loans still out of reach for firms DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

VIETNAM Loans still out of reach for firms

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VIETNAM Loans still out of reach for firms Empty VIETNAM Loans still out of reach for firms

Post by 1alaskan Fri May 11, 2012 9:15 pm

Loans still out of reach for firms


VietFinanceNews.com - Firms are struggling to borrow following the central bank’s lending cap enactment. After the Ministry of Finance proposed a bailout package worth VND29,000 billion ($1.38 billion) to support firms, the State Bank enacted Circular 14/2012/TT-NHNN to cap lending rate at 15 per cent, per year in export, agriculture and rural areas, supporting industries and small- and medium-sized enterprises (SMEs) priority areas.


Ho Chi Minh City-based Hanco Food Joint Stock Company director Nguyen Cong Tuan said he contacted branch offices of DongA Bank an ACB, but ran into a wall.

Ho Chi Minh City Business Association (HBA) deputy chairman Pham Ngoc Hung expressed concern over how banks would handle the ceiling lending policy and who would actually be qualified to borrow under the policy.

Tran Quoc Binh, director Viet Quoc Thinh Company Limited - which turns out organic fertiliser in Ho Chi Minh City Hi-tech Agricultural Zone (one of four above-mentioned priority areas), remained cautious about Circular 14’s real efficiency.

“It is impossible to impose an administrative order into a market economy. It is unlikely that firms more easily put hands on bank loans,” said Binh.

Hung unveiled concerns that banks’ lending procedures had yet to be revised as with SMEs’ credit documents banks often apply the same appraisal procedures relevant to collateral or project efficiency.

At this point of time, one of viable solutions for SMEs to access loans is through the SME Credit Trust Fund under management of Ho Chi Minh City People’s Committee.

However, given the fund’s current limited capital scope just few firms could borrow. The HBA suggested the city authorities enrich the fund capital sources simultaneously with simplifying guarantee procedures to get more firms accessible to the fund lending.

“This May, we will host a meeting between banks, financial investment companies and SMEs to discuss remedies,” said Hung.

http://www.vietfinancenews.com/2012/05/loans-still-out-of-reach-for-firms.html

*****************
Being defeated is often a temporary condition. Giving up is what makes it permanent.
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Yesterday would have been better, but today is a good day

Remember as always, JMHO
Rantings from just north of sixty

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