Hanoi (VNA) - Difficulties inborrowing money from banks have made it difficult for farmers to developagricultural production in Hanoi.

Tran Dinh Thanh, head of the FarmersAssociation of Ba Vi district’s Cam Linh commune said the association includes61 households raising a total of 270,000 chickens, reported by Tien Phong(Vanguard) newspaper.

It needs 17 billion VND (748,000 USD) tomaintain their breeding activities, he said.

This meant each household was required tocontribute about 300 million VND (13,200 USD).

However, most of them could borrow only 100million VND (4,400 USD) from banks because to borrow more, banks requiredfarmers to use their land-use right certificate as collateral, he said.

Most households rent land for breedingfarms, so they have no land-use right certificates.

Ngo Thanh Tung, head of a group of animalbreeders in Dong Anh district’s Viet Hung commune in Hanoi said the group is raisingmore than 50 sows and hundreds of pigs.

The group provides jobs for more than 20local labourers with regular income of 3-5 million VND (132-220 USD) eachmonth, he said.

Yet he and other breeders could only access12 month loans from the State Bank of Vietnam (SBV). The short-term loansaffected the breeders’ mindsets as they had to pay their loans back quickly, hesaid.

Thành said he hoped the Government wouldhelp farmers could borrow middle and long-term loans in the future.

In June 2015, the Government issued Decree55/NĐ-CP, aiming to create favourable conditions for farmers to borrow moneywith preferential treatment. Under the decree, farmers can get a loan from 50million – 3 billion VND (2,200 - 1.3 million USD) but were required to givebanks their land-use right certificates before receiving money.

A representative from the SBV admitted toshortcomings in providing loans for farmers.

Nguyen Tien Dong, head of the SVB’s CreditDepartment said he knew many famers who failed to borrow money due to the needto provide land-use right certificates as collateral.

He said the SVB will ask the Government to amend regulations on mortgages tofix the shortcomings.

Economist Can Van Luc said lending moneywithout collateral should be carefully considered because banks would risksborrowers failing to pay back their loans.

It is easy to see why banks had tocarefully calculate the feasibility of a project before lending money, he said.

Luc said authorised agencies are advised toprovide training for farmers so that they use the money they borrowed frombanks effectively. When they present a feasible plan, they can borrow moneyfrom banks easier.-VNA