Over 70 Percent of Loans Have Rates Cut to below 15 percent
Commercial banks in Vietnam have cut lending rates to below 15 percent for 70.9 percent of their total loans as of August 2, according to a report from the State Bank of Vietnam (SBV).
The central bank said that loans with annual rates lower than 10 percent account for 3.4 percent of total lending while loans with rates between 10 percent and 13 percent make up 18.5 percent of total outstanding loans.
Loans between 13 percent and 15 percent per annum account for 49.1 percent, while loans with rates higher than 15 percent fell to 29.1 percent of total lending, down 60 percent compared to July 15.
State-owned lenders made the deepest cuts and loans with rates above 15 percent fell to 6.9 percent from 61 percent of total lending as of July 15.
Earlier last month, SBV governor Nguyen Van Binh told commercial banks to cut rates on existing loans to below 15 percent to support struggling enterprises.
Nhan Dan
Vietnamese
