Sixteen commercial banks cut over VND21.24 trillion (US$936 million) of loan interest for COVID-19-hit customers from July 15 to December 31, 2021, surpassing their commitment by 5.13 per cent, the State Bank of Vietnam (SBV) reported on Wednesday.

The Vietnam Bank for Agriculture and Rural Development (Agribank) made the sharpest reduction with over VND5.51 trillion for more than 3.5 million customers.

It was followed by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), with VND4.63 trillion for 269,644 customers; and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), over VND4.12 trillion for 452,746 customers.

According to Deputy Governor of the SBV Dao Minh Tu, last year, the bank maintained the regulatory interest rates, creating favourable conditions for credit institutions to access the SBV capital at low costs.

Tu said that the 16 banks, which own 75 per cent of the total outstanding loans of the economy, showed strong performance in realising their commitments to reducing interest rates for pandemic-hit clients.

Earlier, the banks committed to cutting loan interests amounting to VND20.6 trillion for customers.

Four State-run commercial banks continued to commit a VND4 trillion aid package for reducing loan interests and cutting all banking service fees for customers in localities undertaking social distancing in line with the Prime Minister’s Directive No 16. —VNS