BIDV, Vietcombank Announce Dong Loan Rate Cuts
The Bank for Investment and Development of Vietnam (BIDV) announced yesterday that it would cut dong lending rates by up to 300 basis points from December 8 in line with government measures to try to prevent an economic downturn.
As scheduled, BIDV will cut common short-term lending rates to 10 per cent-11.5 per cent per annum from current 11.4 per cent-13 per cent.
Medium- and long-term lending rates, meanwhile, will be equal to the rate that BIDV pays on 12-month term deposits plus at least 3 per cent.
The BIDV said it would prioritize credit for manufacturers of essential goods, exporters, and small- and medium-sized enterprises to help them make it through the current economic slowdown.
On the same move, Vietcombank yesterday also cuts its preferential rate by 0.5 percentage point to 10.5 per cent per annum. The common lending rate was also cut 0.52 percentage point to 12.48 per cent, effective from December 5.
Exporters who committed to selling foreign currencies to Vietcombank, meanwhile, would be given preferential rates on loans denominated in dong of only 5.04 per cent per year.
The State Bank of Vietnam yesterday reaffirmed that lending interest rates charged to borrowers by domestic credit institutions cannot exceed 150 per cent of the base rate. (Vietnam Economic Times)
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