Banks Lower Interest Rates

Many banks announce to reduce lending interest rates by 0.5 -1 percent per annum

On Friday, many State owned and joint stock commercial banks announced their decision to reduce their lending interest rates by 0.5 -1 percent per annum.

 

As an example, the Bank for Investment and Development of Viet Nam has decided to lower its rates to between 18.2 - 20 percent per year, depending on type of loan.

 

The reduction was made following the State Bank of Viet Nam’s decision to raise the interest rate on compulsory deposit reserves in VND at credit institutions to 3.6 percent, up from 1.2 percent per annum.

 

Such an increase will enable credit institutions to cut down lending interest rates, thereby contributing to boosting production, investment and trading activities in Viet Nam, said the bank.

 

The bank also announced that the prime interest rate of 14 percent per annum will be maintained in the coming time.  

 

The two decisions of the bank will take effect on September 1, 2008.

 

 

By H.Ni-H.Yen – Translated by Truc Thinh

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