Recently, Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) has announced the launch of a loan package with preferential interest rates in the third quarter (Q3) with a scale of 60 trillion dong and 600 million US dollars. The lending interest rates loans in dong are from 4.3 percent per annum and from two percent per annum for loans in US dollar, down by 0.2 0.5 percentage point compared to the preferential interest rate package in Q2.
Meanwhile, Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank) cut lending rates by 0.2 percentage point from June 30th to remove difficulties, promote production and business, restarting the economy which has been hit by the Covid-19 epidemic.
Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) further cut lending rates by an addition of 0.5 percentage point from July 1st. This is the third time the bank lowered lending rates in 2020 with a total cut of 2.5 to three percentage points. The bank has provided a preferential loan package with a size of 93 trillion dong to support customers.
Meanwhile, Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) is applying a programme to lower interest payable to customers in the third phase from May 15th to July 31st for about 85,000 customers with an outstanding credit of 64 trillion dong.
Recently, at the bank-enterprise connection conference in HoSE, 16 banks have signed credit contracts to support the recovery of enterprises and develop business after the Covid-19 pandemic. In particular, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) uses one trillion dong with preferential interest rate from six percent per annum for enterprises.
In mid-June, An Binh Commercial Joint Stock Bank (ABBank) also cut personal lending rate to 7.6 percent per annum, raising the total interest rate reduction to 2.9%. The bank is also providing a loan package to group of customers with business needs until December 31st with interest rate reduction of 0.5 percentage point, reaching seven percent per annum.
Governor of the State Bank of Vietnam (SBV) Le Minh Hung emphasized that the credit institution (CI) system committed to fully and timely providing capital to the economy. the SBV will continue to direct CIs to cut costs and lower profit in order to lower lending rates, ensuring safety and operational quality of the system of CIs.
On the other hand, the SBV also adjusted the credit growth limits for banks to take advantage of lending opportunities to support the economy. therefore, the cut of lending interest rates is considered to attract customers.
The SBV will soon consider amending Circular 01 in the direction of extending the debt restructuring time until the end of 2020. The new loans after the prime minister announced the epidemic on January 23rd will also be considered restructuring.
