Interest rates for all maturities have decreased.

Credit institutions continue to implement interest rate reductions on existing loans, setting the maximum rate at 15% per year.

According to the State Bank of Vietnam, the average interbank market interest rate for VND transactions decreased across maturities of 1 month or less, 3 months, and 9 months or more; specifically, overnight, 3-week, and 9-month maturities saw decreases of 1.04%, 1.16%, and 1.75% respectively; other maturities experienced decreases ranging from 0.41% (1-month maturity) to 0.9% (1-week and over 12-month maturities).

Specifically, for 2-month and 6-month terms, the average interest rates increased by 1.75% and 0.39%, respectively.

For USD-denominated transactions, the average interest rate decreased this period for overnight, 3-week to 3-month, and 12-month maturities, with common reductions ranging from 0.01% (3-week maturity) to 0.18% (12-month maturity), while the 2-month maturity saw a decrease of 1.32%.

The average transaction interest rates for 1-week, 2-week, and 6-month terms increased by 0.19%, 0.08%, and 0.39%, respectively.

According to the State Bank of Vietnam, the current prevailing interest rates for demand deposits are 1-2% per year; for terms under one month, 2% per year; for terms from one month to under 12 months, 8.8-9% per year; and for terms of 12 months or more, 10-12% per year.

Common interest rates for USD deposits are 2% per year for individual deposits and 0.5% - 1% per year for deposits from economic organizations.

Credit institutions continue to implement interest rate reductions on existing loans to a maximum of 15% per year, as directed by the Governor of the State Bank of Vietnam in Notice No. 198/TB-NHNN dated July 9, 2012. Notably, this week, the Export-Import Bank launched a credit program worth VND 5,000 billion with an interest rate of 10% per year, provided that the VND loan is secured by USD and linked to an increase in the VND/USD exchange rate of no more than 1%. Currently, common lending interest rates for agriculture, rural areas, exports, small and medium-sized enterprises, and supporting industries are 10-13% per year; lending to other production and business sectors is 12-15% per year.

USD lending interest rates remained stable compared to last week, commonly at 5-7% per annum for short-term loans; and 6-8% per annum for medium and long-term loans.

According to (vov.vn) - LT