Fishing trawlers in central Da Nang City. Fishermen with well-managed fisheries models may enjoy a zero per cent interest rate in a near future. — Photo baodanang.vn

HA NOI (Biz Hub) ― The State Bank of Viet Nam and commercial banks will reserve loans totalling VND10 trillion, or US$476.20 million, to assist fishermen facing difficulties due to the ongoing East Sea tensions.

SBV Governor Nguyen Van Binh announced this on the sidelines of a National Assembly session on Monday, following a Government plan to help fishermen build and upgrade vessels for offshore fishing.

The terms of the loans will be 10 to 15 years. The banks will offer an interest rate of 5 per cent per year and with a Government subsidy of 2 per cent, the fishermen will have to pay an interest rate of only 3 per cent.

The central bank is also considering applying a zero per cent rate for those with well-managed fisheries models. All newly built ships will be insured and the Government will cover 70 per cent of the premium, according to Binh.

Prime Minister Nguyen Tan Dung has asked the Ministry of Agriculture and Rural Development to issue a decree on the programme so that the assistance can be expanded nationwide.

"The support funds are ready and can be disbursed any time when there is a legal framework of the Government," Binh said. "We hope that with the current developments, together with the efforts of ministries and sectors, the decree will be available soon."

The East Sea has been witnessing tensions for a month due to China's illegal placement of the Haiyang Shiyou-981 oil rig in Viet Nam's exclusive economic zone and continental shelf. A Vietnamese fishing trawler was sunk by a Chinese ship in this zone on May 26. ― VNS