HFIC tells firms how to access low-interest loans

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The Ho Chi Minh City Finance and Investment Company (HFIC) and other financial institutions informed enterprises of ways to access low-interest loans at a seminar on Wednesday.

Chairwoman of the Ho Chi Minh City CEO Club, Dang Minh Phuong said, "It is extremely hard for enterprises to get access to medium- and long-term loans at the moment.

"That is why CEO Club and HFIC are co-hosting this seminar today to introduce measures for businesses to get access to medium- and long-term loans."

HFIC General Director Diep Dung said his company has financial sources in the World Bank (US$50 million), the French Development Agency AFD (Euro50 million), the city's Environmental Pollution Reduction Fund, the Science & Technology Development Fund and the Circulation Fund, of which 70 percent is from ADB.

The low-interest loans are intended for Vietnamese Ho Chi Minh City-based companies investing in areas like infrastructure, education, clean water supply, healthcare, urban development and manufacture of hi-tech products, Dung said.

 "The city authorities will pay all the interest for projects that build new facilities, upgrade equipment or expand premises, or buy modern hi-tech equipment in healthcare, education and social and cultural areas."

Companies that can get access to such loans can take loans worth up to 70 percent of their projects. The city authorities will pay all the interest on loans up to VND100 billion.

Support from the city authorities will last up to seven years, Dung said.

He said such medium- and long-term loans at low interest rates (lower than commercial banks) are intended to help enterprises make long-term investments to increase their competitiveness.

Ho Chi Minh City companies with investment projects outside the city can also take such loans if their projects are in Laos or Cambodia, Dung said.

Other projects approved by the People's Committee of Ho Chi Minh City shall be considered for loans in specific cases.

Companies that take such loans should have clear financial statements which indicate their real situation and meet other eligibility conditions, he said.

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