State bank raises credit compulsory reserve interest rate

The Governor of the State Bank of Vietnam has decided to increase the annual interest rate for compulsory reserves in Vietnamese dong for credit institutions from 3.6 percent to 5 percent.

The new rate, which comes into effect from Oct. 1, aims to enable credit institutions to reduce their lending interest rates for borrowers, the Governor said in his decision issued on September 25.

The Governor also decided to freeze the basic interest rate on Vietnam dong at 14 percent per annum in October as part of an effort to rein in inflation and stabilise the macro-economy.

VNA

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