Vietcombank lowers lending rates
The Bank for Foreign Trade of Vietnam (Vietcombank) today, January 9, suddenly announced the reduction of interest rates for Vietnamese dong loans, aiming to support enterprises in priority sectors.
Specifically, Vietcombank will apply the interest rates for Vietnamese dong short-term loans at a maximum of 6% annually, down 0.5 percentage point versus the ceiling rate regulated by the State Bank of Vietnam (SBV). The rates are applicable to old and new loans, especially those taken out by enterprises in the priority sectors, including hi-tech agricultural firms and startups.
In addition, the bank will lower annual interest rates for Vietnamese dong medium- and long-term loans of enterprises by 0.5 percentage point.
Vietcombank is reportedly the first bank to announce its interest rate reduction for this year, in line with the governmental Resolution No.01/NQ-CP, dated January 1, 2019, and orientations of SBV on increasing credit, restructuring and improving credit quality and providing credit for production sectors, particularly priority ones.
The preferential rates will be valid for sectors specializing in agricultural and rural development; import-export firms; small and medium enterprises and supporting industries operators; hi-tech firms; and hi-tech agriculture companies and startups.
Also, the reduction will be applied on a wide scale for Vietnamese dong short-, medium- and long-term loans, confirmed a Vietcombank representative. Loans enjoying the preferential rates account for some 30% of the bank’s total credit outstanding balance in Vietnamese dong.
Data from SBV show that common interest rates applied at credit institutions vary between 6% and 9% for short-term loans and some 9%-11% for medium- and long-term loans.