>> Interest rates on VND deposits drop as December’s final week approaches
>> Overnight interest rates in VND soar to highest levels since February
Average VND inter-bank interest rates dropped for most terms in the week from December 18-24.
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| Average VND interest rates dropped for most terms |
Average overnight interest rates saw the sharpest fall of 2.47% leaving the rate at 10.42%.
Average VND interest rates of one-week, six-month and one-year terms decreased by 0.45% to 0.58%. One-month, three-month and non-term interest rates posted slight decreases while two-week terms rose 0.3%.
According to the State Bank of Vietnam (SBV),VND deposit interest rates saw less change than the previous week, ranging from 13.5% to 14% per year. Most credit organisations did not offer promotions in cash or interest rates.
Interest rates for short-term loans in agriculture and exports stood at 12.5%-14.5% per year; the rates of 15% -18% per year were applied for other production and business areas and 18% - 20% per year was for non-production areas.
Most short-term transactions in VND are overnight and one week, accounting for 64% of the whole week’s transaction value. Total overnight VND transaction value was estimated at VND40.61 trillion (USD2.03 billion) and the figure of USD at USD1.43 billion.
During the week, USD interest rates remained quite stable against the previous week. Demand deposit interest rates ranged from 0.2%-0.5% per year. The rates of 3.5%-5.2% per year were for terms of less than one year and 4.2%-5.6% rates imposed on terms of more than one year. USD lending interest rates were popular at 5.5%-6.5% per year for short term loans and 6%- 8% per year for mid and long term loans.
