State Bank instructs provision of loans for rice procurement

The State Bank of Vietnam (SBV) has requested its chapters in the Mekong Delta and commercial banks to provide loans for rice procurement in the 2019 Winter-Spring crop, which is now in the prime harvest season in the delta.

In a move to support local farmers and enterprises in producing and selling rice, the SBV asked banks to arrange capital for lending to rice trading firms.

The banks in the region were also required to work with rice trading firms to study their capital needs and accelerate capital disbursement for the firms to buy rice.

SBV chapters in the Mekong Delta were told to keep close watch on the rice market and local credit institutions' lending activities for rice procurement, and report any problems to the SBV and People's Committees of cities and provinces in the Mekong Delta for timely settlement.

Rice farmers in the Mekong Delta are facing difficulties as unhusked rice prices this year are lower than those in the same period last year, and few firms are buying rice.

Prime Minister Nguyen Xuan Phuc also chaired a meeting with relevant ministries and agencies on February 19 on measures to bolster rice procurement and raise rice prices.

Source: People's Army Newspaper