Some 20 commercial banks in Ho Chi Minh City have disbursed over VND520 trillion ($21.66 billion) to enterprises, cooperatives, and household businesses in the southern city so far this year, according to the Ho Chi Minh City branch of the State Bank of Vietnam (SBV).

The figure exceeded the registered capital package by nearly 15 per cent.

Banks have committed this year to providing preferential credit totaling VND453 trillion ($18.8 billion) to enterprises, cooperatives, and household businesses in the city.

The commitment was part of the city’s banking-business connection initiative, which is designed to connect banks and financial institutions to support capital for startups and small and medium-size enterprises (SMEs) during the 2020-2025 period.

Last year, 13 commercial banks in the city registered for the preferential credit package of more than VND434.2 trillion ($18 billion). The banks disbursed over VND568.3 trillion ($24 billion), exceeding the registered preferential capital package by 131 per cent and a 16.65 per cent increase year-on-year. Interest rates were 6 per cent on short-term loans and 10 per cent on long-term loans.