Mobilised interest rates to be kept under control

The Governor of the State Bank of Vietnam (SBV) sent a telegram on March 2 asking directors of SBV branches in provinces and cities to examine the application of mobilised interest rates in Vietnam dong (VND) by credit organisations in their localities.

According to the telegram, at present commercial banks in many provinces and cities are increasing the mobilised interest rate in VND to 17-18 percent/year, thus driving up the average interest rate and leading to market instability.

The SBV Governor Nguyen Van Giau stressed the need to strictly punish those credit organisations that violate the State Bank’s regulations.

Earlier, at a press conference on the SBV’s solutions to implement the Government’s Resolution No.11, Governor Giau said that the mobilised interest rate should not exceed 14 percent/year.

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