Many banks reduce lending rates

The move to reduce lending interest rates came right after Prime Minister Nguyen Xuan Phuc's proposal at the Conference on implementing banking sector tasks. Accordingly, Vietcombank announced that from January 15 to December 31, 2018, it will simultaneously reduce lending interest rates for businesses in five priority sectors, high-tech agriculture, and start-up businesses.

Specifically, the maximum short-term lending interest rate in VND for borrowers to meet capital needs for a number of economic sectors and industries has been adjusted down by 0.5%, to a maximum of 6% per year. Existing loans as well as new disbursements from now until the end of 2018 will be reduced to 6% per year.

Banks reduce lending rates.

Similarly, Agribank reduced short-term loan interest rates from a maximum of 6.5% per year to a maximum of 6% per year and reduced medium- and long-term loan interest rates from 8% per year to 7.5% for customers in five priority groups with transparent and healthy financial situations.

Previously, VietinBank said tFrom now until November 30, 2018, this bank applies an interest rate of only 5% per year for small business customers.

Specifically, the bank applies a loan interest rate of 5% per year for loans with a maximum term of one month. The interest rate of 6% per year applies to new customers with a short-term preferential period of up to 3 months. The interest rate for medium and long-term loans is from 8.5% per year with a preferential interest rate period of 12 months from the date of disbursement. This interest rate applies to small businesses.

For regular customers, VietinBank applies short-term loans with interest rates from 7% per year with a maximum preferential period of 3 months; medium and long-term loans from 9% per year and an applicable period of 12 months from the date of disbursement.

In the joint stock sector, Vietnam Prosperity Bank - VPBank also said it is ready to support a 0.5-1% interest rate reduction for small and medium-sized enterprises that operate well in sectors prioritized by the Government.

In response to this development, Agribank representatives said that this is a positive move in seriously implementing the Government's directive that bank credit should continue to promote its role in promoting economic growth, creating conditions to promote the process of economic restructuring. Credit will continue to be expanded reasonably and focused on priority areas for development and creating momentum for growth.

At the conference on implementing banking tasks in 2018, Governor Le Minh Hung also said that immediately after this conference, the State Bank will issue Directive No. 01, directing the entire system to implement the 2018 plan tasks, in which considering reducing lending interest rates is a key content.

The Governor also suggested that the State Bank will consider reducing lending rates on the open market (OMO) to support credit institutions with conditions to reduce lending rates.