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Banks cut lending interest rates to support pandemic-hit businesses

By Anh Minh   August 11, 2021 | 10:30 pm PT
Banks cut lending interest rates to support pandemic-hit businesses
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.
Sixteen Vietnamese banks have agreed to lower loan interest rates for Covid-19-hit businesses, with the total reduction estimated to be worth VND24.3 trillion ($1.07 billion).

The figure includes an additional VND1 trillion each the four state-owned lenders, Vietcombank, VietinBank, BIDV, and Agribank, will reduce for businesses based in localities under strict social distancing rules, deputy governor of the State Bank of Vietnam, Dao Minh Tu, said Wednesday.

Last year the central bank lowered its policy rates to enable banks to cut loan interest rates by 1.2-1.5 percentage points. This year they have fallen by another 0.5 percent.

"The State Bank of Vietnam has directed banks to reduce operating costs and accept a fall in profits," Tu said.

The Ministry of Finance is also working on a proposal to cut VND20 trillion worth of taxes and fees for businesses and individuals.

Since the beginning of last year the government has announced VND118 trillion worth of support packages including tax and fee cuts.

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