Outstanding debt of small and medium enterprises in Nghe An accounts for only over 11%

(Baonghean.vn) - Nghe An has more than 15,000 registered businesses, but only 4,713 small and medium-sized enterprises have access to bank loans, accounting for 11.3% of the total outstanding debt in the area.

According to information from the State Bank of Vietnam, Nghe An branch, as of October 30, capital mobilization in the area reached 104,482 billion VND, an increase of 0.9% compared to the beginning of the year. Outstanding credit reached 164,200 billion VND, an increase of 13.7% - higher than the general rate of the whole country.

To date, the outstanding medium and long-term debt is estimated at VND101,604 billion, accounting for 61.9% of the total outstanding debt. However, local mobilization has only met 73% of the credit demand in the area.

Transaction at Vietcombank Vinh City branch. Photo: Viet Phuong

By the end of September 2017, there were 4,713 small and medium enterprises having credit relations with credit institutions with a total outstanding debt of VND 18,340 billion, accounting for 11.3% of the total outstanding debt in the whole area, mainly enterprises operating in the fields of trade, services, industry and construction.

According to the leader of the State Bank of Vietnam Nghe An branch, with the goal of further promoting credit relations to support the small and medium-sized enterprise sector, providing solutions to unblock credit sources, remove obstacles and difficulties, and help small and medium-sized enterprises, the State Bank of Vietnam Nghe An branch continues to proactively deploy working delegations of the banking sector to survey and work in districts and towns in the province.

Thereby, grasp and handle the reflections and recommendations of people and businesses related to access to bank capital; Effectively organize the bank-business connection program and the price stabilization loan program in the province.

Produced at Lan Anh Garment Company (Vinh City). Photo: Viet Phuong

In addition, local credit institutions also simplify loan procedures, reduce inconvenience for customers on the basis of ensuring capital safety; publicize loan procedures, roadmap to reduce procedures, time limit for handling loan needs; Build a roadmap to reduce fees, reduce operating costs, and eliminate unreasonable fees related to lending activities.

Implementing interest rate reduction according to the direction of the State Bank, currently, the lending interest rate in the province is about 6%-6.5%/year for short-term loans for priority sectors, 9.3%-11%/year for medium and long-term loans.

Viet Phuong