A glimpse at a small-and-medium enterprise specialized in woodwork Mr. Tran Huu Thai, Director of Ho Chi Minh City Credit Guarantee Fund informed that the fund was established ever since 2006 with two major functions of supporting enterprise business strategies and procedures for bank loans.Small and medium enterprises in Ho Chi Minh City find it hard to access the loan facilities of banks due to the fact that they have great demands for loans but hold less or no assets available for mortgage. In 6 years of operation, the fund has earmarked VND 706 billion or over 3.6 times of its charter capital.By supporting and guaranteeing activities, totally 50 enterprises have now been able to guarantee for themselves for the loans.According to Mr. Thai, the fund is also helping enterprises to maintain better management process with self-made business strategies. Enterprise management competence has resulted in unclear financial status. The fund has helped them to make themselves clear with financial status and pursuade banks to offer them with loans.Talking to Binh Duong Newspaper reporters, Mr. Thai informed that the Ho Chi Minh City Credit Guarantee Fund was created mainly from the budget. Besides, Ho Chi Minh City People’s Committee has also called upon commercial and joint stock enterprises to contribute into the fund; however, the objectives of the fund are for non-profit purposes but to make it easier for enterprises to access bank loans. In the meantime, commercial banks are obviously for profit, thus, funding from banks to the credit guarantee fund is barred due to the non-profit purposes.Enterprises in difficulties of asking for loans shall be guaranteed by the fund once they have no assets available for mortgage. On the other hand, during the periods of loans, banks will make contacts with the fund to offer borrowing enterprises with guarantee grace and expansionAs asserted by Mr. Thai, majority of enterprises in Ho Chi Minh City made transactions with the credit guarantee fund have been in good operation with higher flows and better promtion of growth.Reported by Thanh Son – Translated by Vi Bao
Part 2: Effectiveness and experience of credit guarantee fund in Ho Chi Minh City
The model of credit guarantee fund has appeared in other localities, showing its effective implementation. One of the examples is Ho Chi Minh City Credit Guarantee Fund.Part 1: Credit guarantee fund established A glimpse at a small-and-medium enterprise specialized in woodwork Mr. Tran Huu Thai, Director of Ho Chi Minh City Credit Guarantee Fund informed that the fund was established ever since 2006 with two major functions of supporting enterprise business strategies and procedures for bank loans.Small and medium enterprises in Ho Chi Minh City find it hard to access the loan facilities of banks due to the fact that they have great demands for loans but hold less or no assets available for mortgage. In 6 years of operation, the fund has earmarked VND 706 billion or over 3.6 times of its charter capital.By supporting and guaranteeing activities, totally 50 enterprises have now been able to guarantee for themselves for the loans.According to Mr. Thai, the fund is also helping enterprises to maintain better management process with self-made business strategies. Enterprise management competence has resulted in unclear financial status. The fund has helped them to make themselves clear with financial status and pursuade banks to offer them with loans.Talking to Binh Duong Newspaper reporters, Mr. Thai informed that the Ho Chi Minh City Credit Guarantee Fund was created mainly from the budget. Besides, Ho Chi Minh City People’s Committee has also called upon commercial and joint stock enterprises to contribute into the fund; however, the objectives of the fund are for non-profit purposes but to make it easier for enterprises to access bank loans. In the meantime, commercial banks are obviously for profit, thus, funding from banks to the credit guarantee fund is barred due to the non-profit purposes.Enterprises in difficulties of asking for loans shall be guaranteed by the fund once they have no assets available for mortgage. On the other hand, during the periods of loans, banks will make contacts with the fund to offer borrowing enterprises with guarantee grace and expansionAs asserted by Mr. Thai, majority of enterprises in Ho Chi Minh City made transactions with the credit guarantee fund have been in good operation with higher flows and better promtion of growth.Reported by Thanh Son – Translated by Vi Bao
A glimpse at a small-and-medium enterprise specialized in woodwork Mr. Tran Huu Thai, Director of Ho Chi Minh City Credit Guarantee Fund informed that the fund was established ever since 2006 with two major functions of supporting enterprise business strategies and procedures for bank loans.Small and medium enterprises in Ho Chi Minh City find it hard to access the loan facilities of banks due to the fact that they have great demands for loans but hold less or no assets available for mortgage. In 6 years of operation, the fund has earmarked VND 706 billion or over 3.6 times of its charter capital.By supporting and guaranteeing activities, totally 50 enterprises have now been able to guarantee for themselves for the loans.According to Mr. Thai, the fund is also helping enterprises to maintain better management process with self-made business strategies. Enterprise management competence has resulted in unclear financial status. The fund has helped them to make themselves clear with financial status and pursuade banks to offer them with loans.Talking to Binh Duong Newspaper reporters, Mr. Thai informed that the Ho Chi Minh City Credit Guarantee Fund was created mainly from the budget. Besides, Ho Chi Minh City People’s Committee has also called upon commercial and joint stock enterprises to contribute into the fund; however, the objectives of the fund are for non-profit purposes but to make it easier for enterprises to access bank loans. In the meantime, commercial banks are obviously for profit, thus, funding from banks to the credit guarantee fund is barred due to the non-profit purposes.Enterprises in difficulties of asking for loans shall be guaranteed by the fund once they have no assets available for mortgage. On the other hand, during the periods of loans, banks will make contacts with the fund to offer borrowing enterprises with guarantee grace and expansionAs asserted by Mr. Thai, majority of enterprises in Ho Chi Minh City made transactions with the credit guarantee fund have been in good operation with higher flows and better promtion of growth.Reported by Thanh Son – Translated by Vi Bao
