State Bank leaves prime rate at 7% (05/08)
06/08/2010 - 13 Lượt xem
The prime rate has remained unchanged since February, when the State Bank cut it from 8.25 per cent to 7 per cent - the lowest rate since 2004.
Pursuant to Decision No 1811/QD-NHNN, which took effect on August 1, the interest rate on dong-denominated loans would be capped at 10.5 per cent per year, although interest on consumer and some other loans could range between 12 and 16.5 per cent per year.
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Banks lend nearly $22bil in subsidised loans |
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Over VND389.1 trillion (US$21.86 billion) was lent under the subsidised interest rate programme through July 30, according to the State Bank of Viet Nam. The amount was VND3.5 trillion ($196.6 million) higher than in the previous week. Of the total, State-owned banks and credit unions lent VND272.3 trillion ($15.3 billion), private commercial banks VND93 trillion ($5.2 billion), and joint venture banks VND19.4 trillion ($1.08 billion). Finance companies lent only VND4.3 trillion ($241.6 million). Domestic and foreign-invested private enterprises borrowed VND259.5 trillion ($14.6 billion) under the programme, State-owned enterprises VND61 trillion ($3.4 billion), and households VND68.6 trillion ($3.86 billion) under the programme. |
In the past week, banks were quoting lending rates at 8.5-10 per cent on short-term loans in dong, 10-10.5 per cent on longer-term loans.
Credit institutions during the week of July 24-30 were reporting a rise in interbank rates by an average of 1.17 percentage points on one- to two-week loans, while interbank rates on six-month loans had fallen by a similar spread.
The average overnight rate was 6.92 per cent per year, an increase of 0.97 percentage points compared to the previous week.
Meanwhile, according to a State Bank weekly report, a number of commercial banks - including Orient Bank, Sacombank and Sai Gon-Ha Noi Bank-were offering higher interest rates on deposits, by 0.2-0.3 percentage points, in the week of July 24-30.
Currently the highest deposit interest rate on offer is 10.2 per cent, offered by both the Viet Nam Tin Nghia Bank and the Housing Development Bank on 36-month deposits.
Source: VietNamNet/Viet Nam News
