Ho Chi Minh City’s waste recycling fund needs revision only six months after its launch. Since its offering, only one company has applied for the loan. Huynh Phu Nam, the fund’s director, has admitted that high interest rates are discouraging waste recycling firms from borrowing from the fund. The fund was supposed to finance research and implementation projects in waste management - including recycling and reuse - but the high interest rates and low loan limits are proving to be a burden to takers.
The fund is offering preferential loan rates at an annual interest of 12.5 per cent, which compared to other environment-related funds is still too high. Nam said the fund has to focus on more modern and more creative ways to attract waste recyclers to the fund.
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