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Saturday, July 13, 2024

SBV tells banks to further cut lending rates

By N. Tan

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HCMC – The State Bank of Vietnam (SBV), the country’s central bank, has written to commercial banks asking them to further lower lending rates.

Domestic banks and foreign bank branches in Vietnam should take necessary steps to decrease rates by 1.5 to 2.0 percentage points to support businesses and households to resume and develop production and business post pandemic.

Rate cuts should apply to outstanding and new loans, according to the central bank.

Prime Minister Pham Minh Chinh earlier requested the SBV to find ways to make commercial loans cheaper for businesses and households amid the ongoing economic doldrums.

Commercial banks will have to keep the central bank updated about their rate lowering plans for this year before August 25.

In the year till now, the SBV has lowered key interest rates four times, leading to an overall decrease of 0.5-2 percentage points.

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