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: , , ,

Posted by VBN on Sep 9 2011. 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

You must be logged in to post a comment Login

Stay informed everyday

Subscribe to free RSS and email updates from Vietnam Business News

Subscribe via Email Subscribe in a Reader Follow us on Twitter Connect on Facebook

RSS Singapore Business News

  • Rail Corridor chosen as project name for former railway land
  • HDB resale prices rise faster in Q3
  • Govt making good progress in meeting flat demand: Khaw
  • Paramount Hotel renamed in S$30m makeover
  • SDB sells 9 units at Hijauan project
  • Colliers survey reveals property investor caution in Asia

RSS India Business News

  • Nifty rangebound; JPAsso, HDFC, ITC, Sun Pharma up
  • Sensex gains momentum; FMCG, realty, metals up
  • Nifty slips in red; ICICI, SBI, RCap, GAIL, PNB down
  • Bombay Dyeing on path to transform into realty company
  • Godrej Properties in development pact with Godrej & Boyce
  • Exports rise 44 percent in August; deficit widens to $14 bn

RSS Malaysia Business News

  • Adventa likely to rechallenge overnight resistance
  • Continuous selling pressure on Bursa
  • CPO futures finish easier
  • Solution to protect children in cyberspace
  • Ringgit ends flat on fears of Greece default
  • 11 corporate heads attend leadership talks

Sponsored

  • Looking for an overseas forex broker?
  • Trading Point now offering Forex Malaysia and FX Japan with Forex, CFD's and Futures.