Tin mới
Credit Opportunities for Businesses (05/12)
05/12/2011 - 7 Lượt xem
Why is it difficult for small to medium-sized businesses to obtain bank and investment fund loans? How can this problem be fixed?
Inability to prepare a good feasibility study and prove financial transparency is the biggest problem that makes it hard for small to medium-sized businesses to obtain a loan from banks and investment funds. Those who want to get a loan should hire consultants to prepare good feasibility studies because banks consider and make lending decisions based on these reports.
Financial transparency is also an important matter to lenders. Most small to medium-sized businesses do not make banks and investment funds feel at ease with their accounting book systems - something that functions as an integral base for lenders to make a lending decision. The more transparent the company's financial system is, the easier it is to get a loan from the banks and investment funds.
What did HFIC do to diversify its sources of capital?
The global economy is experiencing a crisis. Therefore, capital from international organizations has decreased. Mobilization of capital from foreign financial institutions has also become more difficult than before. With guidelines and assistance from the Ho Chi Minh City People's Committee and support from the Government and the Ministry of Finance, HFIC is still able to obtain preferential loans from major financial institutions such as the World Bank (WB) and the Asian Development Bank (ADB).
HFIC recently signed a 20 million euro credit package with the French Development Agency (AFD) to provide medium and long-term credit for educational and medical infrastructure, and for environmental projects, and housing-for-the-resettled projects in Ho Chi Minh City.
What does HFIC fund in addition to infrastructure projects?
By providing interest rate-related assistance for projects that earn revenue directly and are capable of paying off original debts, we continue to fund demand stimulating projects in the fields of education, health and environment in the city. Social security, clean water supply, environmental hygiene, energy efficiency, urban improvement, hospitals and school upgrading and construction, and construction of housing for workers and low-income earners are activities in which HFIC is highly interested.
HFIC receives and disburses capital for businesses participating in a market stabilization program, while also providing absolute assistance for businesses that store goods for market stabilization on time. It signed memoranda of understanding with prestigious international organizations such as the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA) to consider providing preferential credit for clean energy, environmental and information technology (IT) infrastructure projects. We are working with banks and other financial institutions in Asia, including Japan, Singapore and China to mobilize new sources of capital at a low cost to finance projects with preferential credit in areas prioritized by the city./.
Source: VEN.
