Commercial banks cut dong loan rates to 12pct

As of June 30, three state-owned commercial banks have become pioneers in reducing dong loan interest rates, State Bank of Vietnam reported on its website at www.sbv.gov.vn.

According to SBV’s report, Bank for Investment and Development of Vietnam (Bidv) has issued Official Document No 2887/CV-ALCO3 on June 16 asking all its branches to apply interest rates for short-term dong loans for the fields of agriculture and rural development, export and small and medium enterprises down to 12 percent per year.

Vietnam Joint Stock Bank for Foreign Trade (Vietcombank – VCB) has decided to reduce dong lending rates for the agriculture sector and rural development, export and small and medium enterprises down to the level of 12.3 percent per year for short-term loans and 13 percent years for medium and long term loans, taking effects from July 01, 2010.

At Industrial and Commercial Joint Stock Bank of Vietnam (Vietinbank – CTG), the lending interest rate of dong for short-term loans for the agricultural production, rural development, export and small and medium enterprises has been pulled down to a maximum of 12.5 percent year, applicable from July 1, 2010.

It is reported that 10 out of 13 commercial banks attended the meeting with the State Bank of Vietnam and Vietnam Banking Association on June 25, 2010 that reached a consensus to lower interest rates consist of state-run Bank for Agriculture and Rural Development of Vietnam (Agribank), state-run Mekong Delta Housing Development Bank (MHB) and joint stock commercial banks: Tecombank, Vietnam International Bank (VIB), Military Bank, VPBank, Habubank, Asia Commercial Bank, Saigon Thuong Tin Commercial Joint Stock Bank, Vietnam Import and Export Bank.

The central bank said that although those banks have yet to publish information on their interest rate cuts, they are now urgently planning to reduce interest rates and will soon announce the moves in a few days.

On the morning of June 29, the Vietnam Banking Association met with representatives of commercial banks in the north and they will meet representatives of commercial banks in South Vietnam on July 01 in order to unify its members’ agreement on further reducing deposit and loan interest rates in dong.

Tags: loan rates, Vietnam commercial banks, Vietnam finance, Vietnam financial

Posted by VBN on Jul 1 2010. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry