15 % Lending Rate Cap to Be Applied to Businesses in 4 Priority Sectors
The State Bank of Vietnam (SBV) recently issued Circular 14/2012/TT-NHNN, imposing a 15 percent cap on lending interest rates for four priority sectors.
Accordingly, the maximum interest rate for short-term loans in Vietnamese dong will be equal to the current maximum deposit interest rate of 12 percent as required by the SBV for terms from one month more plus three percentage points a year.
Businesses operating in agriculture, exports, and supply industries, as well as small and medium-sized enterprises, will benefit from the new lending rate cap.
Borrowers trading in the preferential sectors must meet the specific conditions stipulated by the SBV and have healthy, transparent financial situations approved by recognised credit institutions.
Credit institutions must publicly list the lending rates as well as the criteria for borrowing loans, and are not allowed to collect any extra lending fees except for those listed in SBV Circular 05/2011/TT-NHNN, dated March 10, 2011.
Nhan Dan
Vietnamese
