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How does bank credit help agriculture? | Finance



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How much capital has "pumped" for agriculture?

Loans to the agricultural sector (agriculture – farmers – rural areas) receive special attention from the Government. Accordingly, the new Government announced Statement 116 (July 9, 2015) amends and supports a number of articles from Statement No. 55 (June 9, 2015) on credit policy for agricultural development Many policies and regulations have & # 39; have modified the new development situation in line with the trend of the 4th Industrial Revolution (CM 4.0).

Specifically, doubling the credit limit to farmers to 100 million and 200 million compared to an old limit of 50 million and 100 million; Debt restructuring regulations, debt freeze and proper grace period … in loans ba; High-tech agricultural loans …

With the new guidance, expect a great development in the agricultural sector when bank credit flow flows really and is effective.

So, in the past, how much does the banking sector have pumped capital for agriculture?

According to the State Bank of Vietnam, rural agriculture and credit by the end of 2017 account for about 20% of the total loans that have not been paid to the economy and reached 1.31 trillion dong, up 25.5% by the end of 2016 .

However, by the end of 2017, capital inflows for agriculture, forestry and fisheries only accounted for 49.3% and reached 654,590 billion VND.

Loans in agriculture and rural areas continued to grow 4.2% (VND 55,416 billion) in the first three months of 2018 and VND1.36 trillion reached, accounting for 21% of the total remaining loans of & # 39; the economy.

Five months later, the rate of pumping capital into agriculture and rural areas fell sharply by 12% compared to the end of 2017 with 101.8 billion billion, bringing the outstanding debt in this sector to 1.46 trillion dong, accounting for the 23% share of debt of the entire economy in August 2015.

Therefore, during the first eight months of 2018, 157,299 billion VNDs were pumped to agriculture and rural areas.

In addition, by the end of C1 / 2018, agricultural loans reached 488.746 trillion dong agricultural enterprises, accounting for 35.8% of the total unpaid loans in agriculture and rural areas.

Agribank is "monopolizes" the three agricultural loans

The Vietnam Bank for Agriculture and Rural Development (Agribank) is a specialist bank and is almost exclusively for agricultural loans, accounting for more than 50% of the total loans for agricultural loans and rural in the whole banking sector. Goods.

At 31/12/2017, Agribank has provided loans to rural areas of 645,367 billion VNDs with over 3 million customers. The proportion of unpaid loans in this sector accounted for more than 70% of Agribank loans.

According to the financial statement for the second quarter of 2018, from 30/6/2018, the total amount of loans due to Agribank reaches 925,217 billion, up to 5.5% over the end of 2017. In particular, there are outstanding loans on for loans Agriculture, forestry and VND fisheries reached 272,288 billion, rising by 3.7% compared to the end of 2017 and accounted for 29.43%; Outstanding loans for home employment, production of household and household self-service reached VND 193,626 billion, up 11.6% over the end of 2017, accounting for almost 21%. Both of these sectors account for 50% of Agribank's outstanding loans.

By 30/9/2018, three outstanding Agribank VND loans reached 705,244 billion, accounting for 73.6% of the total unpaid loans from VND 958,213 billion.

Source: Agribank

Apart from Agribank, many banks have opened capital to "flow" to the agricultural sector, although it is little compared to the needs of this area. For example, by the second quarter of 2018, the Saigon Bank (SHBank) gave loans for agriculture, forestry and fisheries to VND45,326 billion, accounting for 21.75% of the total loans. The Asian Joint Stock Bank (ACB) has only provided loans for agriculture and forestry 873 billion VND, accounting for 0.4%.

As regards C3 / 2018, Kienlongbank also gave loans for agriculture, forestry and fisheries, accounting for 21.3% of the total unpaid loans and reaching VND5,855 billion. The Military Bank (MBBank) also gave loans for agriculture, forestry and fisheries of 2.879 trillion dollars, accounting for 1.41 per cent.

According to the State Bank of Vietnam, agriculture credit has contributed to bringing agricultural, forestry and fisheries production value in 2017 up 2.9%; Quarter I / 2018 increased by 4% over the same period in 2017.

However, there is a need for added value for agricultural, forestry and fishery products, and will require a comprehensive reform in agricultural production, and bank credit will need to contribute to innovative Innovation.

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