SBV said in the week from June 18 to 25 alone, banks and credit institutions lent VND9.78 trillion under the programme, or an increase of 2.81 per cent over the previous week.

By June 25, State-owned commercial banks and the Central People’s Credit Fund had lent VND254.6 trillion ($14.1 billion), a 2.34 per cent increase over the previous week. Joint-stock commercial banks followed with a disbursement of VND82.5 trillion ($4.58 billion), a surge of 4.15 per cent.

Joint-venture banks, foreign bank branches and wholly-foreign owned banks, meanwhile, allocated nearly VND17.3 trillion, up 2.76 per cent over the previous week.

Financial companies also disbursed VND2.7 trillion, up 7.7 per cent, under the programme.

As for borrowers, non State-owned enterprises, including liability limited companies, joint-stock companies, private enterprises and foreign invested companies benefited most from the programme, as the firms received VND236.9 trillion, up 2.81 per cent from the previous week.

Co-operatives, households, individuals, and others borrowed VND64.9 trillion, while State-owned enterprises received VND55.2 trillion from the programme.

According to the SBV, this year’s total short-term loans from the interest rate subsidy programme were estimated to reach VND583 trillion and the figure for long-term loans was expected to be VND70 trillion.

The programme, which has a subsidised lending interest rate of 4 per cent per year, proved to be effective in helping enterprises boost their business and production, thereby mitigating risks for the banking sector and the economy as a whole.

SBV governor Nguyen Van Giau said that loans from the programme had also contributed to the country’s rapid credit growth sine the beginning of the year. In the first five months of the year, credit grew at an average rate of 14 per cent over the same period last year. Credit growth in June was estimated to be over 17 per cent.

Giau said that the Central Bank was maintaining strict control of the money supply to avoid any negative impacts.