The SBV has made an announcement of the reductions of the caps for VND mobilizing interest rates applied for entities and individuals’ deposits at the credit institutions and the foreign bank branches (hereinafter referred to as credit institutions), and the cap for VND short- term lending rate for several economic sectors.
Since the beginning of 2019, the State Bank of Vietnam (SBV) has managed the monetary policies in an active and flexible manner in close coordination with the fiscal policies and other macro policies in order to control the inflation, stabilize the macro-economy, contributing to supporting the economic growth; the liquidity of the credit institutions has been ensured and abundant, the money and forex markets have been stable and smooth. Together with the consistent measures and solutions of the Government and the Prime Minister, the macro-economy has continued to be stable; the economic growth in the third quarter of 2019 reached 7.31%; the inflation has been controlled at the level of below 4%, which is the target inflation set out right from the beginning of the year (as compared to that of the same time last year, the CPI in October rose by 2.24%; the average inflation in the first ten months of 2019 increased by 2.48%).
Implementing of the directives of the Government and the Prime Minister on reducing the lending rates based on the macro-economic situations, the money and forex markets, the SBV has issued guiding documents on decreasing the interest rates, which take effect from November 19, 2019, specifically as follows:
(1) Decision No. 2415/QD-NHNN dated November 18, 2019 stipulating the caps for VND mobilizing interest rates applied for entities and individuals’ deposits at the credit institutions as stipulated in Circular No. 07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum VND mobilizing interest rate for demand and below 1-month terms is reduced from 1% p.a to 0.8% p.a; the maximum VND mobilizing interest rate for time deposits of 1-month to below 6–month terms decreases from 5.5% p.a to 5.0% p.a; the maximum VND mobilizing interest rate for time deposits of 1-month to below 6–month terms at the People’s Credit Funds and the Micro Finance Institutions is lowered from 6.0% p.a to 5.5% p.a; the mobilizing interest rates for 6-month plus terms may be decided by the credit institution based on the capital supply and demand in the market.
(2) Decision No. 2416/QD-NHNN dated November 18, 2019 on the cap for VND short-term lending rate charged by the credit institutions and the foreign bank branches to borrowers to meet the capital demand in several economic sectors in line with Circular No. 39/2016/TT-NHNN dated December 30, 2016. Accordingly, the maximum VND short-term lending rate for the areas of agriculture and rural development, exports, support industries, SMEs and hi-tech enterprises is reduced from 6.5% p.a to 6.0% p.a; the maximum VND short-term lending rate at the People’s Credit Funds and the Micro Finance Institutions is lowered from 7.5% to 7.0%
Le Hang