The interest rates on Vietnamese dong credits and deposits slashed by 1.5-2 percent over the previous year, helping remove difficulties for businesses, curb inflation and stabilise the monetary market.

The latest statistics by the State Bank of Vietnam (SBV) showed that since the beginning of this year, the central bank has twice lowered the dong deposit interest rate while calling for commercial bank to cut the rates to 10 percent per year on mid-term and long-term loans and 7 percent on short-term loans for priority areas.

It has also urged credit organisations to reduce lending interest rates to below 13 percent per year.

As of November 6, Vietnamese dong loans with rates of over 15 percent per year accounted for 3.95 percent of the total loans, down from 6.3 percent seen at the end of 2013.

Meanwhile, those with rates of over 13 percent per year made up 11.1 percent of the total loans, compared to 19.72 percent recorded late last year.

Cutting interests rate is really a good news for businesses which said the current 7 percent rate is reasonable, helping them to reduce prices and then stimulate consumption.-VNA