Lending interest rate to fall from July

June 28, 2011 | 16:34

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The State Bank of Vietnam has said big commercial banks have agreed to cut lending interest rates to 12 to 12.5 per cent per annum starting next month, newswire Vneconomy reported.

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The agreement was reached in a recent meeting between the central bank’s governor Nguyen Van Giau, representatives of the Vietnam Banking Association (VNBA) and 5 state-owned and other major private commercial banks.

The state-owned banks included Vietcombank, BIDV, Vietinbank, Agribank, Mekong Housing Bank, and the private commercial banks included ACB, Sacombank, Eximbank, Techcombank, Military Bank and VIB bank.

At the meeting, commercial banks’ representatives said lowering lending interest rates to encourage borrowers would fulfill both the government’s goal for streamlining the economy as well as their own interests.

The banks said they had already reduced lending rates for loans to small and medium enterprises operating in agriculture, rural development and exporting.

For instance, Vietcombank and BIDV have offered loans with an interest rate of 12 per cent per annum and Vietinbank, Agribank and Mekong Housing have lent at about 12.5 per cent.

Other joint stock commercial banks have offered loans at about 13 per cent per annum.

Depositing rates offered by VNBA members will also be decreased in the next three months, from the current average rate of 14 per cent per annum to 11 – 11.5 per cent by August and to 10.2 - 10.5 per cent by September.

VNBA will work with other member so that the agreement will be okayed by all member banks before July.

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