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Stimulus packages continue at lower loan interest subsidy

The Government will continue with its policy to stimulate the economy and support social welfare in 2010, extend stimulus packages but lower loan interest subsidy, limiting the number of targeted beneficiaries and shortening the duration of loans.
The Government will continue with itspolicy to stimulate the economy and support social welfare in 2010,extend stimulus packages but lower loan interest subsidy, limiting thenumber of targeted beneficiaries and shortening the duration of loans.

Prime Minister Nguyen Tan Dung made this decision at the Government’sOctober session after a two-day sitting on Oct. 29-30 to discuss thesocio-economic situation and the implementation of economic stimuluspolices.

Under the decision, the subsidised interest rate will how be halved to 2 percent (for mid and long-term loans.)

According to the Minister of Planning and Investment, Vo Hong Phuc, theGovernment at the fifth session of the 12 th National Assembly reportedan estimate of 145.6 trillion VND, (more than 8 billion USD) forimplementing policies on economic stimulus and social welfare in 2009and coming years.

The sum includes 17 trillion VND (about 1 billion USD) for loaninterest subsidy, 90.8 trillion VND for development investment, 28trillion VND for tax exemptions and reduction, and 9.8 trillion VND forother plans.

By Oct. 22, the total loans with subsidised interest rates haveamounted to 412.1 trillion VND, with 15.1 percent for State-runenterprises and 84.9 percent for non-State and household businesses.

The opinions at the session agreed that the policy subsidising interestrates was one of the optimal solutions to stimulate economicdevelopment and stop the economic slowdown./.

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