This result is obtained from the consensus of the banking system in general and each credit institution in particular, showing the determination to join hands with the Party, State and Government to realise the “dual goals”: repelling the epidemic and developing the economy.
Specifically, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) announced a reduction of its lending interest rates for all customers from July 15, 2021 to the end of December 31, 2021.
At the same time, Vietcombank will continue to implement many low-interest programmes for new loans to help customers overcome this difficult period. The total amount of interest to support customers in the last six months of 2021 is expected to be up to VND4 trillion (nearly US$174 million) and more than VND6.1 trillion for the whole year of 2021, a representative of Vietcombank noted.
Meanwhile, the Vietnam Bank for Agriculture and Rural Development (Agribank) on July 15 said it will cut lending rates in Vietnam dong for the fifth time. Accordingly, the bank will reduce interest rates by 10% for short-term loans with an annual interest rate of at least 5%, and mid-and long-term loans with an interest rate of no less than 7%.
The interest rate cut will be worth about VND5.5 trillion (US$239 million). The programme, to last until December 31, will be rolled out at all 2,300 Agribank transaction sites in the country. Besides this, Agribank has restructured loans, provided free-of-charge domestic money transfer services, and donated more than VND130 billion to the COVID-19 campaign.
The Asia Commercial Joint Stock Bank (ACB) also announced that the lending rates for its short-term loans will be cut by a maximum of 0.8 percentage points and that of mid and long-term loans will be reduced by 1 percentage point, all to be applied to existing loans. The bank will adjust the lending rates for both individual and organisational clients between July 15 and October 15.
The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) was the first to cut its lending rates following a meeting between the State Bank and credit organisations. It adjusted its annual rates down by 1 percentage point for the outstanding loans of businesses and individuals affected by COVID-19, such as those operating in tourism, transportation, catering and lodging services, education and health care.
Acknowledging the situation of the COVID-19 epidemic, Permanent Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said the epidemic is still complicated, causing many difficulties for businesses. Therefore, there is still a need for strong, active support and a greater sense of responsibility in continuing to restructure debts and support interest rates in the spirit of the direction of the Prime Minister and the SBV Governor at the beginning of the year.
At the July 12 meeting between the State Bank and credit organisations, credit institutions reached a consensus on reducing lending rates to support businesses and citizens, with a focus on the businesses suffering most from impacts of the COVID-19 pandemic.
General Secretary of the Vietnam Bankers Association Nguyen Quoc Hung said that more banks are expected to follow suit from now until the end of this year in order to assist pandemic-hit clients.
Director of the SBV’s Monetary Policy Department Pham Thanh Ha highly appreciates the consensus of banks in reducing interest rates to support enterprises. However, banks should be flexible in reducing their interest rates, depending on their ability to have an appropriate reduction, he noted, adding that the SBV will closely monitor market developments, listen to feedback, and be ready to intervene in a timely manner to ensure the safe operation of credit institution system.
