Lending interest rates in dong for production and business activities averaged 10.8 per cent at the end of June, decreasing 0.1 per cent over May and down 0.59 per cent over the end of last year. — Photo DTCK

DA NANG (Biz Hub) —  Bank interest rates in the central Da Nang City have eased this year and more credit measures will be implemented during the rest of the year to assist local enterprises.

Vo Minh, the Director of the State Bank of Viet Nam's local branch, made the announcement at a meeting in Da Nang on Thursday.

Lending interest rates in dong for production and business activities averaged 10.8 per cent at the end of June, decreasing 0.1 per cent over May and down 0.59 per cent over the end of last year.

The average lending rate in foreign currencies was 4.52 per cent at the end of June, declining 0.04 per cent over the previous month and falling 0.4 per cent from the figure at the end of 2013.

On June 30, the total dong outstanding loans with interest rates of 13 per cent and lower reached VND47.63 trillion, or US$2.27 billion. This amount accounted for 93 per cent of all lending in the city.

At last year-end, loans with the similar interest rates totalled about VND41.57 trillion, or $1.98 billion, representing 88 per cent of all lending.

Over the coming months, Minh said, the local banking sector will continue to take measures to deal with bad debts and support businesses.

Lenders have been urged to cut interest rates for all existing loans to below 13 per cent, and provide preferential loans for fishermen, who need more facilities for offshore fishing following Government directives.

Da Nang People's Committee Standing Vice Chairman Vo Duy Khuong suggested that credit institutions should actively recommend credit guarantee funds to enterprises, and study long-term investments in businesses so that they can expand their markets.

The city is expected to adopt a project for enterprise development, with bank sponsors, in the near future, to help firms improve production.

At Thursday's meeting, representatives of Agribank, Vietcombank, SCB and Vietinbank and seven local companies signed memoranda of understanding on capital supplies, according to Government portal chinhphu.vn. — VNS