Vietnam’s State Bank Lowers Interest Rates

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Nov. 4 – The State Bank of Vietnam has announced that the prime interest rate in Vietnamese dong will be reduced to 12 percent while the maximum lending interest rate for credit organizations lowered to 18 percent beginning November 5.

The move signals Vietnam's efforts to facilitate capital and ensure their liquidity.The new refinancing interest rate will be set at 13 percent from the previous 14 percent while the discount rate will be pegged at 11 percent from 12 percent.

In addition, overnight interest rates on the inter-bank market will be cut to 13 percent from 14 percent. The SBV Governor told the Vietnam News Agency that compulsory reserves in Vietnamese dong and foreign currencies for credit institutions will be reduced accordingly by 1 percent and 2 percent.