Vietnam 2nd Biggest Lend Cuts Dong Lending Rate to 6.5 per cent Per Annum Friday
The Bank for Investment and Development of Vietnam (BIDV), the second biggest state-owned bank by assets, has said in a statement that it will cut lending rate of dong loans to 6.5 per cent per annum from Friday Jan 9 for the first this year in a bid to help combat economic slowdown.
"The BIDV's move is pioneering in cutting rates in tandem with the government's urgent measures to boost production, stimulate demand to avert recession after 10 consecutive times in the second half last year," Chairman of the BIDV, Tran Bac Ha said.
The BIDV will lower lending rates of 3-month dong loans to 6.5 per cent per annum for its clients such as steel, fertilizer, cement and medicine producers, which have inventories, Ha said.
The bank will also slash lending rates of less than 3 month dong credits to exporters, short-term dong loans to small and medium enterprises to 9 per cent per annum, of 6-month loans to 9.5 per cent to 10 per cent and of more than 6-month credits to 10 per cent-10.5 per cent.
The lender will charge medium, long-term loans with interest rates of 12-month loans plus an additional fee of 3 per cent per annum, but no more than 150 per cent of current benchmark interest rate of 8.5 per cent.
The lender will cut interest rate of dollar loans of 3 months to 4.8 per cent per annum, of less than 6 months to 5.3 per cent, and of more than 6 months to 5.7 per cent.
Late last year, the State Bank of Vietnam cut benchmark interest rate to 8.5 per cent two weeks after the BIDV last cut lending rate to 10 per cent on Dec 4. (BIDV source)
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