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Banks begins to reduce interest rate
Newly adjusted interest rates will be annually reduced by an average 1-2 percent. At present, the short-term interest rates are fluctuating at around 17.5 percent per year.
The Bank for Investment and Development has announced short-term lending interest rates for the Vietnamese dong at VND 17.5 percent per year and for the US dollar at US$9.5 percent per year, to be applied as of April.
Medium-term and long-term interest rates now stand at 18 percent per year for the Vietnamese dong and 10.6 percent for the US dollar. The BIDV has planned to reduce its lending interest rates for the Vietnamese dong to 15.5 percent per year.
To gain a competitive edge, large commercial joint stock banks have decided to cut down their interest rates. ACB bank has fixed its medium-term lending interest rate at 1.5 percent per month, while Eximbank has agreed to reduce their rates from 0.05 percent to 0.2 percent per month.
The General Secretary of the Vietnam Banks Association said reducing lending interest rate creates more opportunities for businesses to approach sources of capital and is considered a method to stabilize the finance market and control inflation.
VNN
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