Adjustment to reduce a series of key interest rates from October 29

A series of lending and deposit interest rates in VND and USD have been adjusted downward from tomorrow (October 29).

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On October 28, the Governor of the State Bank of Vietnam (SBV) signed Decision No. 2174/QD-NHNN on maximum short-term lending interest rates in Vietnamese Dong.

Accordingly, credit institutions and foreign bank branches (except People's Credit Funds and Microfinance Institutions) apply a maximum short-term lending interest rate in Vietnamese Dong reduced from 8% to 7%/year;

People's Credit Funds and Microfinance Institutions apply a maximum short-term lending interest rate in Vietnamese Dong reduced from 9% to 8%/year.

Interest rates applied to credit contracts signed before the effective date of this Decision shall continue to be implemented according to the signed credit contracts in accordance with the provisions of law at the time of signing the contracts.

The Decision takes effect from October 29, 2014 and replaces Decision No. 499/QD-NHNN dated March 17, 2014.

Interest rate on term deposits in VND is 5.5%

In Decision No. 2173/QD-NHNN, the State Bank of Vietnam stipulates the maximum interest rate for deposits in Vietnamese Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches as follows:

The maximum interest rate applicable to demand deposits and deposits with terms of less than 1 month is 1%/year;

The maximum interest rate applied to deposits with terms from 1 month to less than 6 months is reduced from 6%/year to 5.5%/year;

For People's Credit Funds and Microfinance Institutions, the maximum interest rate applied to deposits with terms from 1 month to less than 6 months is reduced from 6.5%/year to 6.0%/year.

Interest rates on term deposits in Vietnamese Dong of organizations and individuals at credit institutions and foreign bank branches arising before the effective date of this Decision shall be applied until the end of the term; in case the agreed term expires and the organization or individual does not come to receive the deposit, the credit institution or foreign bank branch shall apply the interest rate on the deposit according to the provisions of this Decision.

This Decision takes effect from October 29, 2014 and replaces Decision No. 498/QD-NHNN dated March 17, 2014.

Maximum interest rate for individual USD deposits is 0.75%

On the same day, the Governor of the State Bank of Vietnam signed and issued Decision No. 2172/QD-NHNN on maximum interest rates for USD deposits of organizations and individuals at credit institutions and foreign bank branches.

Accordingly, the maximum interest rate for USD deposits of organizations (except credit institutions and foreign bank branches) is 0.25%/year;

The interest rate applied to individual deposits is reduced from 1%/year to 0.75%/year.

For interest rates on USD term deposits of organizations and individuals at credit institutions and foreign bank branches arising before the effective date of this Decision, they shall be applied until the end of the term; in case the agreed term expires and the organization or individual does not come to receive the deposit, the credit institution or foreign bank branch shall apply interest rates on deposits according to the provisions of this Decision.

The Decision takes effect from October 29, 2014 and replaces Decision No. 497/QD-NHNN dated March 17, 2014 of the Governor of the State Bank.

According to VOV