SBV takes measures to reduce lending interest rates

10:38 | 03/04/2018 Finance - Banking

(VEN) - The State Bank of Vietnam (SBV) has taken various measures in order to lower lending interest rates.

sbv takes measures to reduce lending interest rates

The Southeast Asia Joint Stock Commercial Bank (SeABank) is providing preferential loans for enterprises worth VND1.5 trillion. Accordingly, SeABank charges annual lending rates of 7.5 percent for three-month loans and 8.0 percent for six-month short-term loans in Vietnamese dong. The bank also gives out short-term US dollar loans at an annual interest rate of 3.0 percent for six months. The program aims to provide enterprises with short-term loans to supplement working capital for trade and production activities.

PGBank is offering lending interest rates for individual customers of 9.49 percent a year for short-term loans; and 7.49 percent a year in the first six months, 8.99 percent a year in the first 12 months, and 9.49 percent a year in the first 24 months for medium- and long-term loans. TPBank is giving interest rates of 7.2 percent a year in the first six months for individual customers, while SHB is applying interest rates of 8.5 percent a year for short-term loans.

Lending interest rates are being lowered for five priority sectors. According to the SBV, lending interest rates are commonly applied by state-owned commercial banks at 6-6.5 percent a year for short-term loans, and 9-10 percent a year for medium- and long-term loans. Short-term interest rates for enterprises with strong, transparent financial capacity are 4-5 percent a year.

Right after the Lunar New Year holidays in 2018, Prime Minister Nguyen Xuan Phuc urged the SBV to ensure the stability of exchange rates and foreign exchange market, strictly manage electronic money transactions, reduce lending interest rates in line with macro-economic conditions, boost trade and production activities, expand credit growth in addition to improving its quality, and enhance non-cash payments.

SBV Deputy Governor Nguyen Thi Hong said the SBV has implemented the government’s policy of reducing lending interest rates in 2018. In addition to closely monitoring macro-economic developments and the monetary and foreign exchange market, the SBV will consider and adjust interest rates in the open market to support credit institutions in reducing lending interest rates.

Economist Vo Tri Thanh said although growth of the Vietnamese economy is expected to remain positive, it still faces many challenges and Vietnam needs to prepare various scenarios to deal with developments.

SBV Deputy Governor Nguyen Thi Hong said striving to reduce lending interest rates in 2018 is the central bank’s major task.

Duy Minh