Central bank maintains prime rate at 8 pct

The State Bank of Vietnam decided December 25 to keep the prime interest rate for dong deposit accounts at 8 percent.

Transaction conducted at an Asia Commercial Bank branch in Ho Chi Minh City.

Other interest rates remain unchanged compared to last month. 

The refinance interest rate is set at 8 percent per annum and the discount rate at 6 percent. The overnight rate in inter-bank electronic payments, and the rate of loans to finance balances in clearing transactions between the State Bank and commercial banks are all 8 percent per annum.

The decision will take effect as of January 1, 2010.

The bank said the management of basic interest, refinance and discount rates will be flexible in 2010 to keep market interest rates at reasonable rates to facilitate mobilization of funds and achieve growth targets. 

In 2010, the State Bank is aiming for a credit growth rate of 25 percent, lower than this year’s 37.73 percent.

The bank’s governor also asked commercial banks to provide loans to agricultural, forestry and aquaculture enterprises. 

By Ham Yen - Translated by Hoang Yen

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