Central bank tells banks to assist small firms, farmers

The central bank, bidding to combat an economic slowdown, has urged lenders to provide low-interest loans to small- and medium-sized companies, exporters and farmers.

In a statement posted on its website last week, the State Bank of Viet Nam (SBV) told banks to lend to companies that produce or distribute essential goods for Tet (Lunar New Year), in an effort to prevent shortages and keep prices stable during the country’s most important festival.

It asked them not to impose penalties on overdue loans on small-and medium-sized enterprises facing difficulties because of the global turmoil.

Commercial banks and other financial institutions should extend overdue loans for farmers hit by natural calamities and struggling enterprises, it added.

The government has set an economic growth target of 6.5% for this year, up from 6.2% in 2008, the slowest rate in nine years. (TN)