The Viet Nam Bank of Agriculture and Rural Development (Agribank), Bank for Investment and Development of Viet Nam (BIDV), Viet Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Bank for Foreign Trade of Viet Nam (Vietcombank) and Mekong Delta Housing Bank (MHB) will now have to reduce interest rates on loans for these farmers and enterprises to a maximum level of 11 per cent per year — the lowest market interest rate at present, reports VNS.
Customers experiencing difficulties in their business and production could be given another two years to pay back debts, as requested by the central bank.
The move followed Prime Minister Nguyen Tan Dung's order on August 8 to help struggling farmers in the sector in the wake of disease outbreaks, falling prices and capital shortages. Priorities are given to households, co-operatives and enterprises raising, slaughtering and processing livestock, poultry and tra fish for export.
According to the Ministry of Agriculture and Rural Development, in the first half of this year, livestock prices continued to drop and hit the lowest point for the last two years.
According to the Viet Nam Livestock Association, current losses in the livestock sector are estimated to be as high as VND2,000 billion (US$96 million) per month.
In the aquaculture sector, since the beginning of the year, the number of enterprises participating in fisheries exports has fallen by 40 per cent compared to the same period last year, due to losses forcing farmers out of aquaculture.
