SBV asks banks to extend rice reserve loans

Thursday, Jun 27, 2013 10:41

Workers transport rice bags into a warehouse of the Viet Nguyen Rice Processing Co in southern Tien Giang Province. — VNA/VNS Photo Dinh Hue

HA NOI (Biz Hub)— The State Bank of Viet Nam (SBV) has sent a document to commercial banks asking them to extend loans to food companies to enable them to buy paddy/rice reserves.

The central bank asked the banks to follow the production and performance of rice export companies.

If exporters faced difficulties, the banks should carefully consider restructuring loans.

The SBV also asked the banks to supervise the companies' capital utilisation to prevent them from taking advantage of the programme to delay payments.

Under a Government programme, the banks have provided the companies interest-free credit to buy 1 million tonnes of rice from the winter-spring crop.

The Government is fully subsidising the interest on the loans for three months.

Support from the banks has kept rice prices stable in 2012-13, and the Government's policy to buy rice reserves has also supported the price and helped farmers.

The Ministry of Agriculture and Rural Development said it would establish a team to carry out check-ups and supervision on the rice/paddy reserves.

The ministry will co-operate with the Finance and Industry and Trade ministries, SBV, the Viet Nam Food Association and provincial committees to check the quantity of rice reserves.

The team will also look at preferential loans and disbursement of commercial banks. — VNS

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