Hanoi (VNS/VNA) - The Government has officially issued Decree 31/2022/ND-CPon interest rate support from the State budget for loans of enterprises,co-operatives and business households.

This decree provides interest rate support for loans in Vietnamese dong arisingfrom lending activities of commercial banks to customers that are enterprises,co-operatives and business households according to Resolution 43/2022/QH15dated January 11 of the National Assembly and Resolution 11/NQ-CP dated January30 of the Government.

The State budget shall fully and promptly allocate funds forinterest rate support for commercial banks to provide interest rate support tocustomers. Commercial banks provide interest rate support to ensure compliancewith regulations, creating favourable conditions for customers.

The interest rate support applies to interest payment obligations at interestpayment terms that arise during the period from the effective date of thisdecree to December 31 next year.

Commercial banks will stop supporting interest rates after December 31 nextyear or when the funding source runs out, whichever comes first.

The loan with interest rate support is a loan in Vietnamese dong, with loan agreementsigned and disbursed in the period from January 1 this year to December 31 nextyear, using the capital for the right purpose under the provisions of Clause 2,Article 2 of this decree and have not yet received interest rate support fromthe State budget according to other policies.

The interest rate support period is from the date of loan disbursement to thetime when the customer pays off the loan principal and/or interest as agreedbetween the commercial banks and the customers, in line with the funding sourcefor interest support rates announced, but not exceeding December 31 next year.

The support interest rate for customers is 2 percent per year, calculated onthe loan balance.

Nguyen Phuoc Hung, Vice Chairman of the Ho Chi Minh City Business Association,said that many businesses in the area were looking forward to the interest ratesupport package.

The two percent per year interest rate support programme for a number ofbusinesses, co-operatives and business households was part of the economic recoverymaster programme in 2022-2023, he said.

It took a long time from discussion to decision. Now that the decision had beenissued, businesses were looking forward to deploying it soon so that they couldhave more financial resources, he added./.