Inspectors slam banks for stimulus abuse

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Five partially-private lenders committed numerous violations in implementing the government's interest rate subsidy plan during the economic downturn.

State inspectors charged that Vietnam International Bank, Military Bank, Techcombank, Sacombank and Asia Commercial Bank caused a total loss of around VND160 billion to the state budget, VnExpress reported Sunday.

Under the interest rate subsidy plan, a part of the 2009 economic stimulus package, the government subsidized 4 percent of medium- and long-term loans taken by local businesses.

The interest rate subsidy aimed to help major export manufacturers maintain production amid the global economic downturn.

According to the report, the five banks offered the subsidies to ineligible borrowers.

Some cash-rich companies were given loans at subsidized rates and then they deposited the money to earn profits. Others received more money than they should, due to poor assessment procedures by the lenders.

Penalties for the violating banks have not been announced.

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