The Prime Minister has approved a development fund to support small and medium businesses, which will help these enterprises increase production and trade in their respective fields.

The nonprofit fund will operate under the management of the Ministry of Planning and Investment and enjoy tax exemption.

Financial assistance will be channeled through the Vietnam Development Bank and some other commercial banks.

The government will provide an initial sum of VND2 trillion (US$96 million) towards the fund that will gradually help businesses enhance competitiveness, create employment and increase income of laborers.

With a maximum loan duration period of seven years, loans will be available on 70 percent of the basic capital not exceeding VND30 billion ($1.44 million).

Interest rate will be decided by the Ministry of  Finance based on current credit ratings and not more than 90 percent of present lending rate.

Source : saigon-gpdaily.com.vn