Twenty-eight banks reduce lending interest rate to 15pct/yr for old loans
Till July 27, as many as 28 commercial banks have reduced the lending interest rate to less than 15 percent per year for old loans, the local Newswire Tien Phong on August 3 reported, citing the State Bank of Vietnam (SBV) as saying.
As reported by 35 credit institutions (accounting for 70.7 percent of the market share), the total outstanding loans in dong for prioritised sectors with the lending interest rate of less than 10 percent per year accounted for 1.9 percent of the total loans and loans at the interest rate of 10-13 percent per year accounted for 15%.
A proportion of 50.3 percent of the total medium and long term loans was for prioritised sectors, business and production purpose and consumer loans at the interest rate of 13-15 percent per year. The proportion of loans at the interest rate of over 15 percent per year was 32.8%, halving against before July 15.
Loans at the interest rate of over 15 percent per year were mainly for projects, individual consumer loans, bad debts and debts in non-prioritised sectors.
Amongst four state-owned banks namely Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB), Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG), Bank for Investment and Development of Vietnam (Bidv) and Vietnam Bank for Agriculture and Rural Development (Agribank), the proportion of loans at the interest rate of above 15 percent per year at Vietcombank, Bidv and Vietinbank was at very low level, at 2.2%, 4.8 percent and 5.7 percent respectively. Meanwhile, at Agribank, there are still 50 percent of loans at the interest rate of above 15 percent per year mainly in individual consumer loans.
The average proportion of loans at the interest rate of more than 15 percent per year of the group of commercial joint stock banks was 63%. Some banks have reduced the interest rate but the proportion still remained high such as Southern Bank (86%), Southeast Asia Bank (SeABank) at 88.5%, Dai Tin (Great Trust) Commercial Joint Stock Bank (TrustBank) at 98.6 percent and Techcombank at 76.7%. These loans were mainly in the sectors of securities and real estate and overdue debts with high risk.
As many as four branches of foreign banks did not have loans at the interest rate of above 15 percent per year such as ICBC, JP Morgan Chase, OCBC, Nataxis, Cathay Unites Bank while two finance companies of Prudential and PPF had 100 percent of their loans at the interest rate of above 15 percent per year.
Category: Finance
