Banks cut lending rates to support pandemic-hit clients
The Vietnam Bank for Agriculture and Rural Development (Agribank) on July 15 said it will cut lending rates in Vietnam dong for the fifth time.
Accordingly, the bank will reduce interest rates by 10% for short-term loans with an annual interest rate of at least 5%, and mid-and long-term loans with an interest rate of no less than 7%.
The interest rate cut will worth about VND5.5 trillion (US$239 million).
The programme, to last until December 31, will be rolled out at all 2,300 transaction sites of Agribank in the country.
Besides, Agribank has restructured loans, provided free-of-charge domestic money transfer services, and donated more than VND130 billion to the COVID-19 combat.
The same day, the Asia Commercial Joint Stock Bank (ACB) announced that the lending rates of its short-term loans will be cut by a maximum 0.8% and that of mid and long-term loans, by 1%, to be applied to existing loans.
The bank will adjust the lending rates for both individual and organisation clients between July 15 and October 15.
On July 14, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) was the first to cut its lending rates following a meeting between the State Bank and credit organisations. It adjusted the annual rates down by 1% for outstanding loans of businesses and individuals affected by COVID-19, such as those operating in tourism, transportation, catering and lodging services, education and health care.
General Secretary of Vietnam Bankers Association Nguyen Quoc Hung told the Vietnam News Agency (VNA) that more banks are expected to follow suit from now till the end of this year to assist pandemic-hit clients.
At the July 12 meeting between the State Bank and credit organisations, credit institutions reached a consensus on reducing lending rates to support businesses and citizens, with a focus on businesses suffering most from impacts of the COVID-19 pandemic.
