|
US$ IRs lowered, but not low enough to attract businesses
A new US$ deposit interest rate (IR) ground was set up on June 1, when state-owned banks and Vietcombank officially lowered US$ deposit interest rates to 1.5 percent per annum at the highest. However, businesses are still turning their back on US$ loans.
As committed before to the State Bank of Vietnam, on June 1, Vietcombank Hanoi began applying the interest rate at 1.5 percent per annum on US$ deposits of individual clients, while institutional clients get the interest rate of 1.4 percent per annum only.
Also on June 1, BIDV lowered US$ deposit interest rates to 0.7 percent per annum for 1-month term deposits, to 1.1 percent for 3-month, 1.3 percent for 6-month, 1.4 percent for 9-month and 1.5 percent for 12-month term deposits.
At Vietinbank, the highest US$ deposit interest rate now being applied is 1.5 percent per annum (for 9-24 month term deposits), and 1.47 percent for less than nine-month term deposits.
Not only state-owned banks, joint-stock banks have also lowered deposit interest rates to 1.5 percent at the highest. DongA Bank was the first to make the interest rate cut move, applying the 1.5 percent interest rate on June 1. On June 2, SCB slashed interest rates by 0.3-0.85 percent, while its current highest interest rate is 1.65 percent.
Meanwhile, Sacombank’s General Director Tran Xuan Huy said that the bank will not stay outside the interest rate cut movement, adding that lowering deposit interest rates should be considered if banks want to improve loans in foreign currencies.
In the last five months, businesses, including importers which need dollars to make payment, have been rushing to borrow in VND, while turning their backs on US$ loans.
After banks have slashed deposit interest rates, they have committed to lower US$ lending interest rates to 3 percent at the highest.
Vietcombank’s General Director Nguyen Phuoc Thanh said that he hopes the lending interest rate cut will help lure importers back to banks. Currently, businesses can borrow VND loans at 5 percent per annum under the interest rate subsidy programme, while the US$ lending interest rate is 3 percent at maximum.
Thanh added that the US$ loans provided by Viecombank have dropped significantly in the last thee months.
Nevertheless, businesses seem to be indifferent to the news about interest rate cuts.
Truong Thi Thuy Lien, Director of Lien Phat Shoes Company, said that risks caused by the exchange rate fluctuations prove to be unpredictable.
Phan Van Dung, Finance Director of Huu Lien A Chau Company, still thinks that it would be better to borrow in VND. Businesses, if borrowing in VND, can enjoy interest rate subsidies and avoid losses caused by exchange rate fluctuations.
Dung confirmed that his company does not intend to borrow in US$, even though US$ loans interest rates have decreased.
Meanwhile, the State Bank of Vietnam, in a recent press conference, affirmed that it does not intend to devaluate the VND.
VietNamNet, DTCK
|
