VAMC to announce NPL interest rates in the third quarter of 2016

22-Jul-2016 Intellasia | Vietnamplus | 6:00 AM Print This Post

The Vietnam Asset Management Company (VAMC) has announced the interest rates applicable the purchased non-performing loans (NPL) to be implemented in the third quarter of 2016.

Accordingly, the interest rates of NPLs in dong, US dollar and euro will remain unchanged compared to the second quarter. Specifically, the interest rate applicable of the NPLs in dong is kept the same at 9.6 percent per annum, while interest rate of the NPLs in US dollar remains the same at 4.2 percent per annum while interest rate of NPLs in euro is 4.7 percent per annum.

Concerning the basis to determine the adjustment, VAMC said that the adjusted interest rates are calculated as the average savings interest rate in 12 months of four state-owned banks (Agribank, BIDV, VietinBank, and Vietcombank) plus the interest rate amplitude (which is the average difference between normal short-term lending rates of less than 12 months of these four banks and the average 12-month mobilisation interest rates of that credit institution).

The interest rate adjustment is applied to customers and loans that fully meet the conditions stipulated in circular 19/2013/TT-NHNN dated September 6th 2013 of SBV’s Governor on the trading and settlement of bad debts.

 


Category: Finance, Vietnam

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