The rates for medium- and long-term loans will be 9–10.5 per cent compared with the market average rate of 10.5–12 per cent. — Photo tuoitre.vn

HA NOI (Biz Hub) — Businesses in the capital can access loans with interest rates of 7–8 per cent per year under a programme to remove difficulties for businesses.

The programme, initiated by the Ha Noi People's Committee, connects banks and businesses in the capital and is aimed to have commercial banks support credit for businesses at reasonable interest rates.

Under the programme, interest rates for short-term loans will be 7–8 per cent compared with the market average rate of 9–10 per cent. The rates for medium- and long-term loans will be 9–10.5 per cent compared with the market average rate of 10.5–12 per cent.

The programme gives priority to high-tech and supporting industries as well as small- and medium-sized firms.

According to the Ha Noi Statistics Office, credit in the capital in the first 5 months this year increased by 0.3 per cent against the same period last year while deposits rose 2.4 per cent.

Outstanding loans in May alone were estimated at nearly VND948 trillion (US$44 billion), up 0.8 per cent from last month and up 0.3 per cent from December 2013. Additionally, short-term loans increased by 0.6 per cent from last month and 1.4 per cent from December 2013, while medium- to long-term loans increased by 1.2 per cent from last month and 3.9 per cent from December 2013.

However, the capital's credit growth rate was much slower than that of the whole banking industry. Data from the State Bank of Viet Nam revealed that credit growth in the system by the end of April had reached 1 per cent.

Total deposits of Ha Noi-based credit institutions in May reached VND1,071 trillion ($49.81 billion), up 1 per cent from last month and 2.4 per cent from December 2013. — VNS