Short-term Lending Rate Slashed by 1 Pct

The State Bank of Vietnam (SBV) issued the Circular No. 16/2013/TT-NHNN on June 27, 2013 on maximum interest rate on short-term loans in Vietnamese dong to be charged by credit institutions and foreign bank branches to borrowers to meet the capital requirements for several priority economic sectors.

 

Accordingly, the maximum interest rate on short-term Vietnamese dong-denominated loans is 9 percent per annum. However, the people's credit funds and microfinance institutions are allowed to apply the maximum rate of 10 percent per annum.

 

Short-term VND loans applied this maximum interest rate are to meet the capital requirements for supporting agricultural and rural development in line with the Decree No.41/2010/ND-CP of the Government dated April 12, 2010 on credit measures for agricultural and rural development; for implementing export-oriented production and business plans in accordance with the Law on Commerce; for supporting production and business of small and medium enterprises (SMEs); for developing supporting industries; and for supporting enterprises with high-tech application.