Vietnamese commercial banks lent a combined VND93 trillion (US$5.3 billion) to businesses in February after the government started a loan subsidy program to boost a slowing economy, the central bank said.
The government said January 16 it will offer VND17 trillion($1 billion) in loan subsidies to entice banks to lend to certain companies at lower interest rates.
Mekong Housing Bank is one of the state-owned commercial banks that eagerly implements this program. Specifically, MHB has disbursed VND 1,425 billion to customers out of 1935 applicants to this program. In 2009 MHB plans to offer VND 24,000 billion to subsidize loan while Saigon Commercial Bank (Sacombank), Asia Commercial Bank (ACB) and Export-Import Bank of Vietnam (Eximbank) would spend VND 4000-5000 billion, VND 7400 billion and VND 7,000 billion respectively for the Q1 2009.