In the late afternoon of November 18, the State Bank issued a notice on the adjustment to reduce the maximum deposit interest rates in Vietnam dong (VND) of organizations and individuals at credit institutions and branches of foreign banks (hereinafter referred to as credit institutions); reducing the maximum short-term lending interest rate in VND of credit institutions for some economic sectors.
According to the State Bank, implementing the policy of the Government and the Prime Minister on striving to reduce lending interest rates on the basis of macroeconomic developments, money and foreign exchange markets, and the documents to reduce interest rates issued by the State Bank
Specifically, Decision No. 2415 / QD-NHNN dated November 18, 2019 on the maximum interest rate for VND deposits of organizations and individuals at CIs as prescribed in Circular No. 07/2014 / TT- SBV, March 17, 2014.
Accordingly, the maximum interest rate applicable to demand deposits and terms of less than 1 month decreased from 1.0% / year to 0.8% / year; The maximum interest rate applicable to deposits with terms from 1 month to less than 6 months decreased from 5.5% / year to 5.0% / year.
Along with that, the maximum interest rate applicable to deposits from 1 month to less than 6 months at people's credit funds, microfinance institutions decreased from 6.0% / year to 5.5%. /year. Particularly, the deposit interest rates for terms of 6 months or more are set by the CI on the basis of market supply and demand.
Regarding lending rates, the State Bank issued Decision No. 2416 / QD-NHNN dated November 18, 2019 on the maximum short-term lending interest rates in VND of credit institutions for borrowers to meet capital needs to serve a number of economic sectors and branches under the provisions of Circular No. 39/2016 / TT-NHNN of December 30, 2016.
Accordingly, the maximum short-term lending interest rate in VND for capital needs to serve agriculture, rural areas, exports, supporting industries, small and medium-sized enterprises, and high-tech enterprises 6.5% / year to 6.0% / year; The maximum short-term lending interest rate in VND of people's credit funds and microfinance institutions with regard to these capital demands has decreased from 7.5% / year to 7.0% / year.
The above decisions take effect from 19th