HCM City SOEs to benefit from SBV $2bn credit

Thursday, Dec 05, 2013 09:20

In the first 11 months, the commercial banks have cut interest rates on loans worth VND40 trillion ($1.9 billion) for State-run businesses.—Photo cafeland

HCM CITY (Biz Hub)— The State Bank of Viet Nam (SBV) has allocated VND45 trillion (US$2.13 billion) for lending to State-owned enterprises (SOEs) in HCM City by the end of this year.

Nguyen Hoang Minh, deputy director of the central bank's HCM City branch, said since the beginning of this year, the bank has focused on consumer loans and restructuring debts for State businesses.

Speaking at a conference to review business operations of State-owned enterprises in the city over the first 11 months, he said commercial banks have cut interest rates on loans worth VND40 trillion ($1.9 billion) for State-run businesses.

He said the central bank branch has pushed three measures: extend due loans; continue to lend to State enterprises with bad debt if they demonstrate effective business operations; and simplify credit conditions.

Minh said the bank has also widened its scope for providing loans.

Many representatives of State-owned companies said at the conference that they still faced many challenges and their profits had dropped significantly.

Le Hoang Quan, chairman of the HCM City People's Committee, urged the SOEs to take the initiative and plan more effective business operations. He said they should make long-term investment plans while also enhance management and co-operation.

According to the Business Finance division under the municipal Finance Department, total revenues of 93 SOEs in HCM City reached VND74.58 trillion ($3.5 billion) in the first 11 months, meeting 76.79 per cent of the year's target, a year-on-year decrease of 30.96 per cent.

During this period, they earned profits of VND6.32 trillion ($299.7 million), meeting 77.67 per cent of the annual target, a drop of 8.34 per cent year-on-year.

SOEs contributed VND7.24 trillion ($340.8 million) to the city's budget in the first 11 months, meeting 82.3 per cent of the annual target, an increase of 6.47 per cent over the same period last year, the conference heard.

There are a total of 108 State-owned enterprises in HCM City, of which 15 are either being merged, dissolved or filing for bankruptcy, according to the HCM City Department of Finance. — VNS

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