The State Bank continued to reduce a series of executive interest rates
The State Bank of Vietnam (SBV) on the afternoon of September 30 continues to have a series of documents on adjusting interest rates, effective from October 1 to continue to remove difficulties for the economy.
Specifically, Decision No. 1728 /QD-NHNN dated September 302020 on refinancing interest rate, rediscount interest rate, overnight lending interest rate in interbank electronic payment and loan to compensate lack capital deficit in the clearing payment of the State Bank towards banks. Accordingly, reducing the refinancing rate from 4.5% /year to 4.0% /year; rediscounting interest rate from 3.0% /year to 2.5% /year; Overnight interest rate in interbank electronic payment and loans to offset the shortage of capital in clearing payment of the State Bank for banks from 5.5% /year to 5.0% /year.
Reducing the interest rate offered to buy valuable papers through the open market operation from 3.0% /year to 2.5% /year.
Decision No. 1729 /QD-NHNN dated September 302020 on maximum interest rates for deposits in VND (VND) of organizations and individuals at credit institutions, foreign bank branches ( Credit institutions) according to the provisions of Circular No. 07/2014 /TT-NHNN dated March 172014. Accordingly, the maximum interest rate applicable to demand deposits and terms less than 1 month is 0.2% /year; the maximum interest rate applicable to term deposits from 1 month to less than 6 months decreased from 425% /year to 4.0% /year; the maximum interest rate applicable to deposits with terms from 1 month to less than 6 months at People’s Credit Funds, Microfinance Institutions decreased from 475% /year to 4.5% /year; Interest rate on deposits with terms of 6 months or more is set by credit institutions on the basis of market capital supply – demand.
Decision No. 1730 /QD-NHNN dated September 302020 on the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet the capital needs to serve a number of economic sectors stipulated in Circular No. 39/2016 /TT-NHNN dated December 302016. Accordingly, the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet the capital needs to serve some sectors and economic sectors decreased from 5.0% /year to 4.5% /year. Short-term maximum lending interest rate in VND of People’s Credit Funds and Microfinance Institutions for these capital needs decreased from 6.0% /year to 5.5% /year
From the beginning of the year up to now, to implement the guidelines and directions of the National Assembly, the Government, the Prime Minister on the implementation of solutions and policies to remove difficulties for businesses and people, ensuring social security. In response to the Covid-19 epidemic, the State Bank has synchronously operated monetary policy instruments to control inflation, stabilize the macro-economy, the money market and reduce the market interest rate level, and support economic growth recovery. Economic growth in the first 9 months of 2020 is 212%, inflation is controlled, an average of 385% in 9 months.
Source: nld.com.vn – Translated by fintel.vn
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