10:20 | 13/03/2017 Finance - Banking
(VEN) - In addition to meeting the economy’s credit demand, commercial banks have implemented several measures to stabilize interest rates.
In order to promote trade and production activities, the government asked the State Bank of Vietnam (SBV) to implement its monetary and fiscal policies with flexibility, maintain macro-economic stability and apply solutions to promote credit growth in priority sectors such as agriculture, exports, high-tech, support industries and small and medium-sized enterprises (SMEs).
In accordance with this policy, commercial banks have allocated loan capital of several tens of trillions of Vietnamese dong at preferential interest rates. For example, the Orient Commercial Joint Stock Bank’s loan package of up to VND3 trillion offers lending starting at 5.99 percent annually until April 3, 2017. Each customer receives a different incentive with a loan of VND200 million or more.
A medium and long-term preferential loan package within the framework of the Vietnam Sustainable Agriculture Transformation (VnSAT) project sponsored by the World Bank, is being offered by the An Binh Commercial Joint Stock Bank (ABBANK). The VnSAT project has a total capital of US$301 million, of which US$238 million come from the World Bank’s preferential loans, with the Ministry of Agriculture and Rural Development being the managing agency. The project is expected to enhance the value chain for rice and coffee in the Mekong Delta and the Central Highlands. ABBANK provides financing for those who invest in technology and upgrade processing facilities to improve the quality and value of agricultural products.
In addition, the bank is providing a VND5 trillion loan package with interest rates starting at 6.49 percent a year for those who purchase houses, real estate and cars, and develop trade and production activities by the end of this year.
Kienlongbank’s VND400 billion credit package with interest rates starting at 7.8 percent a year is available until April 30, 2017 for individuals and households willing to develop agriculture or invest in machinery and equipment serving agricultural production. The Construction Bank is also offering a credit package with interest rates from 6.5 percent a year for individuals and small and medium-sized enterprises.
Offering credit packages with preferential interest rates in many commercial banks not only creates favorable conditions for businesses in accessing capital, but also promotes credit growth.
At a regular January meeting, the government directed the banking system to save costs in order to reduce lending interest rates. Pham Thanh Ha, the deputy general director of Vietcombank, said that stabilizing interest rates this year requires greater effort by commercial banks.
Dr. Le Xuan Nghia, a member of the National Monetary Policy Consulting Board, says stabilizing interest rates is an