Following the State Bank of Viet Nam (SBV)’s decision to cut the annual maximum short-term interest rate for dong loans by 0.5 percentage points, several banks have announced rate cuts.

On July 7, the central bank determined that businesses in the agricultural, export and auxiliary sectors, small- and medium-sized enterprises (SMEs), and high-tech firms could borrow from commercial banks at a maximum short-term rate of 6.5 per cent per year, instead of 7 per cent.

The policy came into effect on Monday.

Among the four State-owned commercial banks, the Bank for the Investment and Development of Viet Nam is the first to offer a maximum short-term lending rate of 6 per cent for the prioritised enterprises.

The Bank for Foreign Trade of Viet Nam (Vietcombank) has cut the maximum short-term lending rate by 0.5 percentage points.

The Vietnam Bank for Agriculture and Rural Development (Agribank) has also reduced the interest rate for short-term loans from 7 per cent to 6.5 per cent, and for medium- and long-term loans from 8.5 to 8 per cent.

The Sai Gon Thuong Tin Commercial Joint Stock Bank has launched a credit package worth VND1 trillion (US$44 million) which has a maximum short-term lending rate of 6.5 per cent for the prioritised sectors. Previously, the cap was 7 per cent.

On July 8, LienVietPostBank reduced the interest rate for loans across all terms by 0.25 percentage points for enterprises with strong, transparent financial capacity, classified AA and above. — VNS