From July 15, Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB) would adjust down the lending interest rate to the maximum of 15 percent per year for old loans basing on the financial capacity of customers.
In addition, the bank will also promote overdue debt and bad debt settlement to quickly recover non-performing loans and develop lending for four prioritised sectors including agriculture and rural area, small and medium sized enterprises (SMEs), export and supporting industry and boost foreign currency trading activities and gold trading to offset for the profit decrease due to interest rate reduction.
Earlier, Saigon Hanoi Commercial Joint Stock Bank (SHB) also announced to cut down lending interest rate for old loans to maximum 15 percent per year from July 15. All four state-owned commercial banks namely Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG), Vietcombank-VCB, Agribank and Bidv also announced to cut down interest rate.
Banks’ interest rate reduction is to carry out the State Bank of Vietnam (SBV)’s governor’s direction to cut down the lending interest rate to help businesses overcome difficulties.
In particular, at the banking conference on July 7, the central bank’s governor required all commercial banks to consider lowering the lending interest rate for old loans to less than 15 percent per year from July 15 (before implementing the mechanism of lending interest rate cap).