Several commercial banks have further cut lending interest rates by a half to a full percentage point to just 13 percent per year in response to a call for lower rates from the Vietnam Banking Association.
Vietinbank, Vietcombank and Agribank were all reportedly preparing to further cut lending interest rates in a move to comply with the association's call for interest rates no higher than 13 percent for loans made to enterprises in the agricultural, fisheries, forestry, salt production and export sectors, as well as other small- and medium-sized enterprises.
The State-owned Bank for Investment and Development of Vietnam (BIDV) led the charge earlier this week when it cut rates to 13 percent for short-term business loans, down a percentage point from the middle of last month. The bank has cut interest on six-month loans to finance exports or agriculture to 12.5 percent.
Privately-invested Lien Viet Bank also trimmed a percentage point off of lending interest rates, offering short-term loans at 13 percent.
"Banks should lower interest rates to attract good-performing borrowers and help enterprises access credit," said Lien Viet Bank's standing vice chairman Nguyen Duc Huong.
Last month, the association twice sent messages to banks urging interest of less than 14.5 percent on all business loans, saying that higher interest rates would discourage business growth during the global economic recovery.
State Bank of Vietnam Governor Nguyen Van Giau told banks late last month that the central bank would use various tools to gradually lower interest rates. Earlier, Prime Minister Nguyen Tan Dung called on banks to reduce lending rates to 12-13 percent per year.
The State Bank has kept the benchmark prime rate at 8 percent in May for the sixth consecutive month the prime rate has been kept unchanged./.
Vietinbank, Vietcombank and Agribank were all reportedly preparing to further cut lending interest rates in a move to comply with the association's call for interest rates no higher than 13 percent for loans made to enterprises in the agricultural, fisheries, forestry, salt production and export sectors, as well as other small- and medium-sized enterprises.
The State-owned Bank for Investment and Development of Vietnam (BIDV) led the charge earlier this week when it cut rates to 13 percent for short-term business loans, down a percentage point from the middle of last month. The bank has cut interest on six-month loans to finance exports or agriculture to 12.5 percent.
Privately-invested Lien Viet Bank also trimmed a percentage point off of lending interest rates, offering short-term loans at 13 percent.
"Banks should lower interest rates to attract good-performing borrowers and help enterprises access credit," said Lien Viet Bank's standing vice chairman Nguyen Duc Huong.
Last month, the association twice sent messages to banks urging interest of less than 14.5 percent on all business loans, saying that higher interest rates would discourage business growth during the global economic recovery.
State Bank of Vietnam Governor Nguyen Van Giau told banks late last month that the central bank would use various tools to gradually lower interest rates. Earlier, Prime Minister Nguyen Tan Dung called on banks to reduce lending rates to 12-13 percent per year.
The State Bank has kept the benchmark prime rate at 8 percent in May for the sixth consecutive month the prime rate has been kept unchanged./.
