PM tells banks to lower interest rates

By Anh Minh   April 28, 2023 | 03:38 pm PT
PM tells banks to lower interest rates
Cash is handed over at a bank in Hanoi. Photo by VnExpress/Giang Huy
Prime Minister Pham Minh Chinh has called on public banks to reduce deposit and lending interest rates to enhance businesses’ access to credit.

At a recent meeting attended by officials from the government and state-owned banks, he said the public banks account for a large proportion of credit in the economy and so must lead the way in regulating the market.

At the end of March deposit interest rates dipped slightly, but still stood at 8-9% a year.

Lending interest rates are 10-12% a year, with some banks even charging 13-14%. Businesses said these rates are too high amid the decline in export orders.

For many seafood, garment and textile and woodwork companies, the decrease in exports has slowed down cash flows, and the high credit interest rates means they lack working capital.

In the first quarter seafood exports fell by 27.5%, matching the decline during the peak Covid outbreak, according to the Vietnam Association of Seafood Exporters and Producers.

The seafood industry will continue to face difficulties this year because its main export markets such as the U.S., Europe and Japan have shrunk.

"The Government is steadfast in its goals of maintaining economic stability, curbing inflation and promoting growth," the PM said at the meeting.

He said the Ministry of Finance has to create favorable conditions for companies to issue bonds and redeem them on maturity.

He also called on relevant ministries and agencies to mitigate the legal difficulties faced by property firms and provide financial assistance for them to complete stalled developments and undertake new ones.

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