The Government chief on Jan 23 decided to provide interest rate incentives of 4% per annum. The decision is the Government’s major move to implement the investment stimulus of US $1 billion.

This year, the Vietnamese Government will help business corporations and individuals access to banking loans by offering interest rate incentives, so that they can minimize production costs, raise domestic competitiveness, and generate more jobs amid the global economic turmoil.

Commercial banks (CBs) will meet demands for capital for production and business activities in line with the conventional credit regime. They also observe the Government’s regulations on interest rate incentives.

The PM ordered CBs to submit applications of interest rate incentives and their plans to the State Bank of Vi?t Nam (SBV) within the first ten days of February 2009.

CBs will apply normal lending regime and interest rates at the moment of signing credit contracts. Upon clients’ due payment of interest rates, CBs will grant a deduction of 4% per year on the loans and the lending term in 2009. Later, the SBV will return the interest rate deduction to CBs. (Chinh Phu)