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BIDV continues to reduce lending interest rates and increase credits
The Bank for Investment and Development of Vietnam (BIDV) today announced its continued reduction of lending interest rates and increase in credits for exports and enterprises that directly create big balances for the economy. This is the second time within this month the bank has reduced its lending interest rates.
Accordingly, from August 1, 2008, BIDV reduces another 0.4% per year for short-term loans in Vietnam dong, to 20.4% per year to those customers who are BIDV's existing individual and organisation customers which have had credit relations with BIDV. Plus 0.2% reduction in lending interest rate last time, the total reduction is 0.6%.
For those exporters that have proved to have feasible trading plans, good debt payment capability, stable export markets, export contracts have been adjusted in prices and wished to borrow loans to promote exports, the new lending interest rate is 19.5%, down 0.9% a year (1.5% a year for both times of reduction).
Economic groups, corporations, companies and enterprises of different economic sectors that directly involve in making products, participating in establishing and stabilising big balances of the economy such as petrol, energy, steel, coal, cement, medicine and fertiliser now enjoy a new lending interest rate of 19.8% a year, down 0.6% a year.
Lending interest rates for short-term loans in US dollar have also been reduced by an average 1% a year and the highest reduction is 1.3% a year, or 3.3% a year for both times of reduction.
Borrowers of loans in foreign currencies must be importers of products that are input for production and exports such as steel billet, fertiliser, petrol, plastic, fibre, cotton, chemical materials, machinery, equipment, cloth, clinker, amongst others.
Specifically, the lending interest rate for two-month term has been reduced to 7.5% a year; 2-3 month terms, 7.8% a year and over 3 month term, 8% a year.
BIDV has also affirmed the bank will increase its credits by VND 20 trillion to promote exports and as loans to economic groups, corporations, companies and enterprises that directly involve in establishing big balances of the economy, to key and urgent projects that is scheduled to be completed this year or in the fist half of 2009.
According to Mr Tran Bac Ha, president of the Board of Managers at BIDV, this is a practical act by the bank to respond to the government's call for curbing inflation, stablise the economy and maintain sustainable growth and share difficulties with its enterprise customers to help them reduce costs for lending interest rate payments so that they could have more capital to promote production and exports, contributing to stabilising and creating major balances of the economy.
BIDV expects that its total revenue will be reduced by VND 500 billion from these two times of lending interest rate reduction.
Earlier, on July 9, BIDV was the first bank to announce its reduction of lending interest rates ranging from 0.2% to 0.6% for loans in Vietnam dong and from 1% to 2% for loans in US dollar.
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