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State bank cuts prime rate to 12 percent
The Governor of the State Bank of Vietnam (SBV) on Nov. 3 decided to cut the prime interest rate in Vietnamese dong by 1 percent point to 12 percent as from Nov. 5.
The decision will also slash the maximum lending interest rate of credit organisations from 19.5 percent to 18 percent.
Those were among several decisions made the SBV Governor in an effort to facilitate credit organisations’ mobilisation of capital and ensure their liquidity and cut lending rates for capital-sought companies.
Coming into effect from Nov. 5 will be the refinancing interest rate of 13 percent instead of the previous 14 percent and the discount rate of 11 percent from 12 percent.
Overnight interest rates on the inter-bank market will be down to 13 percent from 14 percent.
In another move, the SBV Governor decided to decrease the compulsory reserves in Vietnamese dong and foreign currencies for credit institutions by 1 percent and 2 percent, respectively.
Immediately after being informed of those decisions, the Bank for Agriculture and Rural Development (Agribank) and the Vietnam Bank for Investment and Development decided to apply their annum lending rates of 15-16 percent in Vietnamese dong for agriculture household enterprises and small and medium enterprises involved in export and import.
VNA
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