State Bank pledges to maintain lending interest rate cut

The lending interest rate of 15% per annum will be maintained for at least one year, said State Bank of Vietnam (SBV) Governor Nguyen Van Binh. SBV Governor Nguyen Van Binh Binh made the announcement at a meeting on July 20 between banks and enterprises on measures to boost their business and production activities. Despite his instruction, not all companies can be offered interest of below 15% per annum, the Governor added, noting that banks will only cut lending interest rates for companies that operate efficiently. He said that banks are seeking ways to help enterprises with capital difficulties, but not to go all out to save them. To ensure sustainable economic growth, both businesses and banks have to restructure. According to SBV statistics, most banks have slashed lending interest rates to 15% per annum as required by the Governor at a conference. Nguyen Mai Suong, director of the Hanoi branch of the SBV said, since July 15, banks in Hanoi have cut the lending interest rate to 15% for 30 - 50% for existing loans. Vietcombank and BIDV have gone a step further and cut the rate for all existing loans. Other banks are trying to complete their rate cut plan by the end of July. Tourist Vietnam
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