Banks strike deal with sbv to cut lending rates

After a meeting with the State Bank of Vietnam (SBV), several commercial banks have agreed to reduce their lending interest rates to between 17% and 19% beginning in September.

Twelve Vietnamese banks reached an agreement on August 26 with the SBV on the interest rate for loans. SBV promised to be more flexible with their policies in order to help commercial banks increase their liquidity.

The Hanoi-based VPBank said it will earmark VND3 trillion (USD144.23 million) to provide loans at interest rates of 17-19% to firms involved in the agriculture, health and education sectors.

The Bank for Investment and Development of Vietnam (BIDV) decreased their interest rates to 18-19% and also say they plan to offer short-term loans, totaling VND10 trillion (USD479.62 million), for the agriculture and industry.

Saigon-Hanoi Commercial Joint Stock Bank (SHB) will lend up to VND3.8 trillion (USD198.7 million) for small to medium-sized enterprises at the rates of 17-18%.

Many others banks including Agribank, Eximbank, Techcombank and ACB are also lowering their rates.

Negotiable lending rates for real estate sector

The Government is in the process of tightening control over loans for the real estate sector in order to curb inflation. However, banks will prioritise different loans according to the projects, said Nguyen Hung, General Director of VPBank.

He added that loans for speculation should be restricted.

“Surely, banks will apply negotiable interest rates on their own for the real estate sector, since it is not included in on the list of prioritised areas,” Hung said.

Source DTINews

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam Lending interest rates