Central Bank Cuts Interest Rate to Aid Vietnamese Economy

Print
 
Oct 2020
Vietnam, October, 01 2020 - The maximum short-term lending interest rate in dong at people’s credit funds and microfinance organisations for these capital needs is now down from 6 per cent per annum to 5.5 per cent.

The State Bank of Vietnam (SBV) will cut the benchmark interest rate from Thursday (Oct. 1) to support the national economy amid difficulties posed by the Covid-19 pandemic.

The refinancing interest rate will be cut to 4 per cent per annum from 4.5 per cent, while the rediscount interest rate will go down to 2.5 per cent from 3 per cent.

The overnight electronic interbank rate and rate of loans to offset the capital shortage in clearance between the SBV and credit institutions will be lowered to 5 per cent annually from 5.5 per cent.

The central bank also decided to cut the interest rate of bids of valuable papers through open market operations from 3 per cent to 2.5 per cent.

Regarding the maximum interest rate for deposits in the Vietnamese dong by organisations and individuals at credit institutions and foreign bank branches, the maximum interest rate applicable to demand deposits and those of less than one month is 0.2 per cent per annum.

The maximum interest rate for deposits with terms from one month to less than six months will fall to 4 per cent per annum from 4.25 per cent.

The maximum rate for deposits with terms of one month to less than six months at people’s credit funds and microfinance institutions will be cut to 4.5 per cent per annum from 4.75 per cent, while interest rates on deposits with a term of six months or more will be determined by credit institutions based on market capital supply and demand.

Notably, loans to borrowers in several regulated fields and economic sectors have been cut to 4.5 per cent per annum from 5 per cent.

The maximum short-term lending interest rate in dong at people’s credit funds and microfinance organisations for these capital needs is now down from 6 per cent per annum to 5.5 per cent.



Source : The Star
 

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More