| VietinBank, Vietcombank, BIDV, and Agribank will lower interest rates as of January 10. (Photo: VNA)
The institutions include VietinBank, Vietcombank, BIDV, and Agribank. All four made the commitment at a conference held in Hanoi on January 9 which set forth banking targets for 2019.
Nghiem Xuan Thanh, chairman of the Board of Directors of Vietcombank, said the interest rate set for short-term loans from Vietcombank would be 0.5% lower than the ceiling set by the State Bank of Vietnam.
Prioritised access will be given to businesses in the fields of agriculture, exports and supporting industries, small and medium-sized enterprises, as well as those applying advanced technology in production processes.
Lower lending rates are receptive to new borrowers and those having yet to pay off debts. The maximum lending rate set for short-term loans will stand at 6% per year. Interest rates levied on medium and long-term loans in VND will be cut by 0.5%.
Le Duc Tho, general director of VietinBank, said the reduction of 0.5% in lending rates could lead to VietinBank’s profits dropping by VND700 billion (US$30.6 million).
Meanwhile, Agribank will also slash 0.5% in lending rates for preferential loans in conformity with the State Bank of Vietnam’s Circular No. 39/2016/TT-NHNN dated December 30, 2016.