Vietinbank is the first bank to cut the ceiling lending interest rates in Vietnamese dong down to 12.5% per year for three groups of beneficiaries, in accordance with the new lending rate policy.
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| Lending interest rates in Vietnam a downward trend |
As of July 1, the bank will start applying the ceiling rates of 12.5% per year for short term loans by three groups of beneficiaries. These include medium and small sized enterprises; companies engaging in agricultural, rural production; and exporters. However, exporting companies are requested to sell foreign currency to Vietinbank.
In addition to the new lending rate policy, the bank will impose deposit rates in domestic currency at 11.5% per year for various terms.
The move was made after the State Bank and the Vietnam Banks Association,had a meeting with 5 general directors of State Commercial and large Joint Stock Commercial banks.
At the meeting, bankers decided to adjust interest rates beginning next month with an aim of realising the objective that lending rates would be about 12% per year and deposit rates would be about 10% per year .
Vietnam Banks Association’s members agreed with the new interest rate plan, under which in the next 3 months, the deposite rates of Vietnamese dong will be down from 11 to 11.5% per year and at the end of this September, the rates will be around 10.2-10.5% per year.
The consensus among bankers is based on the fact that the macro-economic situation during the first 6 months of this year became stable and prospective and consumer price index growth had been slowed down.
The General Secretary of the Vietnam Banks Association expressed his wish that all members would follow the government’s direction on reducing loans and deposit rates.
