Difficult to implement low interest rate loans

(Baonghean)In the province, there are currently 49 grassroots People's Credit Funds (GCFs) operating in 12 districts, cities and towns, mainly lending for investment in agricultural and rural development. Most of the loans are in the priority group according to the regulations of the State Bank.

Accordingly, the QTDNDCS sets the maximum short-term loan interest rate in Vietnamese Dong for priority economic sectors and fields at 14%/year. However, in reality, some QTDNDCS are currently facing many difficulties in capital mobilization, having to borrow capital from the Central Credit Fund at interest rates from 14% to 15.5%/year (not including transportation, escorting, counting costs, etc.). Meanwhile, QTDNDCS with excess capital deposited at the Central Credit Fund are only entitled to an interest rate of 9.5%/year according to the maximum mobilization rate prescribed in Circular 19/2012/TT-NHNN; the Central Credit Fund pays an additional 1% support interest rate (total 10.5%/year).

Therefore, when the banking sector does not have a solution for the People's Credit Fund to borrow capital at reasonable interest rates, it will be very difficult for the People's Credit Fund system to implement the Government's policy of providing low-interest loans to priority sectors for agricultural and rural development.

Quynh Lan