70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam c.bank ensures harmony in managing policy rates
Ngoc Thuy 17:10, 2020/09/05
The average mobilizing interest rates as of the end of July declined by 0.6 percentage points per annum against late 2019, creating conditions for lower lending rates.

The management of policy rates is part of the State Bank of Vietnam (SBV)'s responsibilities in pursuing its monetary policy’s objectives while ensuring fair benefits for depositors, banks and lenders, according to SBV’s Vice Governor Nguyen Thi Hong.

 SBV's Vice Governor Nguyen Thi Hong at the meeting. Photo: VGP

Ms. Hong shared the view at a monthly government press briefing on September 4, in response to a question related to enterprises, including contractors of build-operate-transfer (BOT) projects, that are facing difficulties in accessing preferential loans.

According to Ms. Hong, since the first Covid-19 outbreak in Vietnam, the SBV has been implementing measures to support the economy, including a reduction in policy rates, so that banks could lower their deposit interest rates. 

On March 13, 2020, the SBV issued Circular No.1 instructing credit institutions and foreign bank branches to structure their repayment periods, waive and reduce interest rates and fees, as well as maintain debt classifications in order to support customers affected by the pandemic.

The move has allowed those struggling with repaying existing debts to access new loans, Ms. Hong said.

The average deposit interest rates as of the end of July declined by 0.6 percentage points per annum against late 2019, creating conditions for lower lending rates, Ms. Hong noted.

At the meeting, Vice Minister of Transport Nguyen Ngoc Dong said many BOT investors have to mobilize capital from other sources to repay banks’ debts.

To date, the transport sector currently has 61 BOT projects, including 6 under operation and one under construction. The Covid-19 pandemic, however, has severely affected revenues of BOT projects, therefore, measures are needed to support BOT firms, stated Mr. Dong.

Since the beginning of the year, the SBV has slashed policy interest rates three times amid sluggish credit growth.

In the first six months of the year, Vietnam’s credit growth was estimated at 2.8% year-on-year, much lower than the 5.7% rate recorded in the same period last year.

RELATED NEWS
TAG: Vietnam SBV central bank policy rates covid-19 coronavirus nCoV pandemic lending rates deposits
Other news
18:20, 2024/05/09
Vietnam's non-cash payments reach US$9.8 trillion, 23 times GDP
Many of the banking industry's digital transformation goals for 2025 are on track to be met or exceeded.
21:53, 2024/05/04
PM urges Central bank to ensure positive growth in 2024
Local lenders are encouraged to provide incentives and attract individuals to take out consumer loans.
17:07, 2024/05/03
Vietnamese Gov't to continue VAT cut for second half of 2024
If the VAT reduction policy is continued for the last six months of the year, the total revenue loss for 2024 is projected to be approximately VND47.5 trillion (US$1.87 billion).
21:54, 2024/04/23
3,400 taels of gold purchased at the first-in-11-year auction
Gold trading firm SJC and lender ACB are the two successful bidders at the auction held today.
16:19, 2024/04/22
HoSE to launch KRX-developed transaction system in early May
Brokerage firms are expected to prepare data for the transition to the new system.
15:23, 2024/04/22
Central bank moves gold auction to tomorrow
The auction was postponed due to a lack of bidders and escrow deposits.