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42% of businesses complain about bank loan access difficulties: survey   2009-03-23 - VietNamNet

Despite a lot of Government support measures, businesses still complain that they find it difficult to access bank loans. The difficulties in bank loans access has always been the long term worry of businesses.


The recent survey conducted by the Vietnam Development Forum and the Hanoi National Economics University showed that in the current period, when the monetary policies have been loosened and demand stimulus packages have been implemented, 20.8% of surveyed businesses still complain that they have difficulties in accessing bank loans.


The figure represents a significant decrease in comparison with the monetary tightening period. However, experts stressed that the figure is still worrying, which shows problems in bringing capital to the production and business sector.


The surveyors have stressed that if the difficulties cannot be improved, the efficiency of demand stimulus packages will be lower than expected.


When talking about the business performance in the time to come, the difficulties in bank loan access has still been cited as the big difficulties together with the challenges caused by the market narrowing. Up to 42.9% of businesses worry that they will still face difficulties in bank loan access in the time to come.


The survey pointed out that previously, the overly high interest rates were the biggest challenge for businesses, and now, the strict conditions on loaning has been cited as the biggest difficulty now. Commercial banks now prove to be very cautious in loaning, which has made procedures become too complicated for businesses. Though the interest rates have been decreasing, businesses still cannot access bank loans due to the strict requirements on borrowers.


Businesses said that if referring to the current regulations, only businesses in good health, which have no difficulties, are eligible for preferential loans under the interest rate subsidy program.


Surveyors have warned that only healthy businesses can access bank loans, while the businesses are not in such big difficulties that they need support. Meanwhile, the businesses that really need support can never access the preferential bank loans.


Dr. Dang Ngoc Duc from the National Economics University has warned that Vietnamese businesses will not have the opportunities to survive the difficulties if commercial banks do not expand credit as a measure to give strength to businesses.


Duc has suggested that banks should simplify loaning conditions in order to bring more capital to more businesses.

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