The firms have received more than 6 billion VND in total from the Vietnam Bank for Social Policies, making them the first businesses to avail of the package.
The bank was assigned to disburse the Government’s loan package for employers to pay salaries for workers in May, however, it had failed to do so due to the strict conditions.
To help businesses access the loans, the bank recently simplified conditions to make employers eligible for a loan when their employees, who hold social insurance cards, must stop work for at least one consecutive month from April 1, 2020, to December 31, 2020.
The businesses’ revenue in the first quarter of this year decreased by 20 percent compared with the fourth quarter of the last year.
The loan term is negotiated by the bank and employers, with a maximum of 12 months. The overdue debt interest rate is 12 percent per year.
Customers are not required to provide loan guarantees.
Nationwide branches of the Vietnam Bank for Social Policies have been working with customers to complete procedures for disbursement. The disbursement will be carried out on January 31, 2021.
The 62 trillion VND package is the first of its kind the Government has offered to support people affected by the COVID-19 pandemic.
The Ministry of Labour Invalids and Social Affairs (MoLISA) recently proposed the Government provide a second package of 18.6 trillion VND to help businesses develop production and business, and employees to borrow preferential loans to restore and maintain jobs.
Beneficiaries include small- and medium-sized enterprises, cooperatives and business households, with priority given to small and micro enterprises (less than 10 employees), cooperatives, household businesses and workers in rural areas.
The estimated loan amount for production and business establishments is 2 billion VND, and 100 million VND for workers, with zero interest rate for 12 months./.
Source: VNA