Declining interbank rates suggest stronger liquidity

Interbank interest rates declined by 0.45 - 2.47 percentage points last week, depending on loan terms, indicating more stable system liquidity after some weeks of tension, the State Bank of Viet Nam announced earlier on Dec. 30.

Overnight rates for loans denominated in Viet Nam dong saw the strongest decrease, dropping 2.47 percentage points to a rate of 10.42 per cent per year.

Average borrowing costs for one-week, six- and 12-month borrowing fell by 0.45-0.58 per cent to a range of 12.72-13.01 per cent. Rates on one-year terms fell to a range of 13-13.25 per cent.

At commercial banks, interest rates for dong-denominated loans to prioritised borrowers - e.g., enterprises operating in agriculture and rural development or exports, and small - and medium sized enterprises - declined to a range of 12.5-14.5 per cent, with other commercial rates continue to average 18-20 per cent per year.

Interbank rates for loans in US dollars, meanwhile, rose by 0.65-2.02 per cent to a range of 1.11-3.25 per cent per year, depending on terms. Commercial bank rates for loans in dollars were being offered at rates of 5.5-8 per cent per year.

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