A staff of the VPBank’s Vinh Yen branch in the northern province of Vinh Phuc uses cash register before lending to customers. — VNA/VNS Photo Tran Viet

The State Bank of Viet Nam (SBV) has cut several interest rates for the first time since 2014, in order to support businesses and boost economic growth.

As per the central bank’s statement, the annual refinancing interest rate, rediscount interest rate and overnight interest rate applied to electronic inter-bank payments and the rate of loans to offset capital shortage in clearing of payments between the SBV and domestic banks have all been cut by 0.25 percentage points. The new rates come into effect today.

Specifically, the refinancing rate has been reduced from 6.5 per cent per year to 6.25; the rediscount rate from 4.5 per cent per year to 4.25; and other rates from 7.5 per cent to 7.25 annually.

The maximum annual short-term interest rate for loans in Viet Nam dong currency by credit institutions to meet customers’ demand for capital in some sectors has also been cut by 0.5 percentage points.

Businesses operating in agricultural, export and auxiliary industries; small and medium-sized enterprises; and high-tech firms will now enjoy a short-term lending rate of 6.5 per cent per year, instead of 7 per cent.

The maximum rate applied for loans supplied by the People’s Credit Fund and other micro-financial institutions has been lowered to 7.5 per cent from 8 per cent.

These adjustments are expected to help increase liquidity for banks to provide loans, stabilise interest rates, the foreign exchange rate and the foreign currency market, thereby contributing to controling inflation and achieving a sustainable economic growth. — VNS