Banks to lower loan interest rates by 50 basis points

By Quynh Trang, Duc Minh   May 27, 2023 | 01:15 am PT
Banks to lower loan interest rates by 50 basis points
A Vietnamese flag flies atop the State Bank building, near the Vietcombank and Bank for Investment and Development of Vietnam buildings, in central Hanoi, Vietnam November 23, 2017. Photo by Reuters
Banks are set to cut loan interest rates on Monday on the directions of the central bank, which is seeking to speed up economic recovery.

State Bank of Vietnam officials have been meeting regularly with bankers to exhort them to reduce lending interest rates amid economic challenges, including on Thursday when a 0.5 percentage point cut was agreed upon.

Some state-owned lenders had already reduced their rates. Agribank lowered its rates by 0.5 percentage points for certain loans, while ACB made a 0.5-2-percentage-point cut.

Prime Minister Pham Minh Chinh instructed the central bank on Friday to find more ways to bring down loan interest rates.

He also tasked it with reviewing the VND40 trillion ($1.7 billion) and VND120 trillion credit packages the government has approved to ensure they are accessible.

Chinh said businesses have been complaining that the current loan interest rates of more than 10% a year are making it difficult for them to keep their operations going.

The SBV on Thursday lowered its policy rates for a second time this year, calling it a "key step to bring down loan interest rates."

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