HCM CITY (VNS) — Commercial banks are considering granting loans to businesses that take part in HCM City's price-stabilisation programme, according to the city's Department of Industry and Trade.

Five banks, Agribank, Eximbank, Sacombank, the BIDV and Vietinbank, are the first commercial banks to participate in the programme which runs from April 1 to March 31 next year.

In previous years, the businesses taking part in the programme received interest-free loans from the city.

In the next 10 days, Agribank plans to disburse VND151.87 billion (US$7.25 million) in short- and medium-term loans to three enterprises.

Sacombank is currently appraising loan applications from a number of companies. They have applied for total loans of VND258.6 billion ($12.3 million).

Similarly, Eximbank and Vietinbank are reviewing loan applications.

As of April 15, companies have applied to borrow a total of VND600 billion ($28.6 million) from the five commercial banks.

The five lenders have earmarked VND860 billion ($41 million) for short-term loans at an interest rate of 6 per cent and VND1.1 trillion ($52.4 million) for long-term loans at an interest rate of 10 per cent.

In addition, the city will subsidise the participating companies' investments in technology and expansion of breeding farms.

The city will also provide the companies with free advertising and subsidies to improve distribution networks. — VNS