Coal businesses find it difficult to access preferential capital.

HFIC will lend 200 billion VND with a 0% interest rate for 7 years for businesses to invest in new machinery, equipment, and factories.

On November 8, the Department of Industry and Trade of Ho Chi Minh City and the Ho Chi Minh City State Financial Investment Company (HFIC) held a conference to implement policies and support interest rates for investment projects in four key industries, supporting industries and logistics according to Resolution No. 98/2023/QH15 and Resolution No. 09/2023/NQ-HDND.

This interest rate support loan program lasts for 5 years, targeting 100% domestic enterprises and public units implementing projects in Ho Chi Minh City. Accordingly, HFIC will provide loans with 0% interest rate for the amount of VND 200 billion, with a loan term of 7 years for enterprises to invest in new machinery, equipment and factories.

The logistics sector alone is supported with a 50% interest rate, meaning the borrower only pays interest on half of the loan amount according to the formula: the average 12-month savings interest rate of 4 major banks (Vietcombank, Agribank, BIDV, VietinBank) plus 2%-2.2%.

The conditions for disbursement are that the enterprise must have a feasible project appraised by HFIC, have collateral, and guarantee the ability to repay the debt... In case the enterprise has not signed a contract with a contractor, equipment supplier... it can still submit an application to be proposed for a loan. However, many enterprises state that the immediate barrier is that they no longer have collateral, and may not be able to access the loan.

Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, said that HFIC is willing to accept mortgages for future assets. However, this asset will be valued at about 50% of the value that the enterprise purchased, from which the loan amount will be decided.

"In particular, businesses with ideas for investing in projects can contact HFIC for advice on the feasibility of that project, to have the opportunity to access 0% interest rate. Businesses that are not eligible for interest rate support for investment projects in the four key industries, supporting industries and logistics but are in the industry group that HFIC is targeting will be able to borrow long-term capital with the current interest rate of 6.7%/year" - Mr. Thanh added.

Source: https://nld.com.vn/doanh-nghiep-than-kho-tiep-can-von-uu-dai-196241108210841084.htm