Vietnam's central bank cuts deposit and lending rates

20/11/2019 12:11

The State Bank of Vietnam has announced a range of interest rate cuts on Vietnamese dong deposits and loans, which take effect from November 19.

The ceiling interest rate on non-term deposits and deposits of less than one month have been lowered from 1.0% to 0.8% per year while the cap on deposits with terms of one to less than six months has dropped 0.5 percentage point to 5.0%.

In the meantime, the maximum interest rates on deposits of six months or longer will be set by credit institutions themselves depending on supply and demand.

The central bank’s decision dated November 18 also slashes rates on loans to a number of priority sectors.
 
Specifically, interest rates on short-term loans to agriculture, supporting industries, small and medium-sized enterprises and high-tech firms will be cut from 6.5% to 6.0%.
 
The borrowing costs at microfinance organisations will also be capped at 7% per year, down from the previous rate of 7.5%./.
Source: nhandan.com.vn



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