Sacombank assists rice production, trading with loans

Friday, Apr 19, 2019 00:00

Sacombank enhances lending to production, purchase and consumption of rice. — Photo Courtesy of Shutterstock

As of the end of last year, outstanding loans in agricultural and rural areas around the country increased by 21.4 per cent from a year earlier, Nguyen Quoc Hung, director of the State Bank of Vietnam’s credit department, said.

The Cuu Long (Mekong) Delta accounted for 17.2 per cent of this, he told a recent conference on “Promoting rice production and consumption in the Mekong Delta”.

Outstanding loans to the rice industry alone went up by VND29.8 trillion to VND99 trillion (US$4.3 billion).

By the end of January, it reached VND100 trillion, with the delta accounting for 50 per cent, up by 0.8 per cent compared to the end of 2018.

To enhance support for rice consumption, the SBV has directed lenders to continue providing adequate credit to rice producers and traders on reasonable terms and interest rates.

Banks have pledged to cut interest rates on loans to five priority areas by half a percentage point, showing the banking sector's positivity and willingness to share the difficulties of businesses and contribute to economic growth.

Following the SBV’s direction and to assist businesses and farmers, Sacombank plans to ensure adequate funds for the production, purchase, processing, and consumption of rice at appropriate interest rates and terms, with a focus on providing loans to businesses in the Mekong Delta.

Sacombank also proactively approached businesses to offer loans and speed up disbursement to companies that purchased, temporarily stockpiled, processed, and exported rice from the winter - spring crop.

The bank is also focusing on medium- and long-term lending to enterprises to fund expansion of warehouses for rice storage and processing in the south-western region.

Since the end of March, Sacombank has participated in the World Bank’s Vietnam - Sustainable Agriculture Transformation (VnSAT) project.

One of its goals is to enable businesses to invest in the production and processing of high quality rice.

Businesses eligible to borrow under this project are private enterprises and those in the process of privatisation, and customers who trade and use raw materials sourced from eight Mekong Delta provinces: An Giang, Can Tho, Dong Thap, Hau Giang, Kien Giang, Long An, Soc Trang and Tien Giang.

The purpose of the loans is to invest in upgrading rice processing plants and equipment, including building part of or whole rice processing plants.

At the end of last year, Sacombank’s total outstanding loans topped over VND15 trillion ($647.2 million), with the south-western region accounting for more than VND8 trillion.

By offering loan packages and joining the World Bank's VnSAT project, Sacombank continues with its commitment to helping businesses and farmers promote agricultural development in general and rice production and processing in particular. — VNS

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