Reduce loan interest rates to 13%/year

Not only have priority sectors had their lending rates reduced to 10% per year, many commercial banks have also pledged to reduce old loans to 13% per year.

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Mr. Le Duc Tho, Deputy General Director of the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) said that from May 13, the bank will reduce interest rates for both old debts and priority industries by 6.5-13%/year. A representative of the Agricultural Bank for Agriculture and Rural Development (Agribank) said that the bank will apply a maximum lending interest rate of 10%/year for priority sectors from May 13. In addition, Agribank also implements priority loan packages with interest rates of 6-8%/year; medium and long-term loans with a maximum interest rate of 11.5%/year; for non-priority sectors and old loans, the interest rate will be applied from 12.5-13%/year.

At the Bank for Foreign Trade of Vietnam (Vietcombank), all old outstanding loans will have their interest rates lowered to below 13%/year from May 13. Currently, this bank has no outstanding loans with interest rates above 15%/year while outstanding loans with interest rates of 13-15%/year are about 50,000 billion VND.

A State Bank leader analyzed the difference in interest rate management this time.reduce lending interest rates but not reduce the ceiling on deposit interest rates, so that commercial banks can proactively structure capital sources and ensure liquidity according to business plans.

Normally, the interest rate for medium and long term loans is calculated by the 12-month savings interest rate plus about 3%, which will be re-evaluated in 3-6 months depending on the lending situation. Therefore, the reduction of loan interest rates has a delay. If the current loan interest rate is above 13%/year, it will be reduced below this level in a maximum of 3 months due to the reduction of the 12-month mobilization interest rate.

According to (Chinhphu.vn) - LT