Banks cut lending interest rate to 13 percent

Commercial banks cut lending interest rate to 13 percent (Photo: SGGP)

After the State Bank of Vietnam (SBV) announced a slash in interest rates by 1 percent, starting May 10, some commercial banks also cut the rate on old loans to 13 percent a year.

For instance, the Bank for Investment and Development of Vietnam (BIDV) on May 13 decided to reduce lending interest rates to 13 percent on old loans whose interest rate was much higher.

Before, on May 8, the bank had shrunk lending interest rate to 10 percent for farmers, exporters, small and medium enterprises, sea food enterprises and flood victims.

Other big banks like Vietnam Joint Stock Commercial Bank for Industry and Trade, Joint Stock Commercial Bank for Foreign Trade of Vietnam, the Vietnam Bank for Agriculture and Rural Development, also slashed lending interest rate down to 13 percent on old loans from May 13.

State Bank of Vietnam said it had ordered commercial banks to maintain the lending rate at 13 percent in the future.

By Nhung Nguyen - Translated by Uyen Phuong

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