Vietnam Daily News

BIDV lowers lending interest rate further by 0.5pct/yr

Written by Dailynews.vn Friday, 16 December 2011 17:45

On December 15, Bank for Investment and Development of Vietnam (BIDV) held a press conference announcing to further lower the lending interest rate. Pham Quang Tung, BIDV's deputy general director, said that from December 19 BIDV will reduce the lending interest rate by 0.5 percent from the bank's current interest rate benchmark for loans with terms of less than three months and for four borrowers including exporters, agriculture and rural developers, small and medium-sized enterprises (SMEs) and difficult firms caused by natural disasters. Particularly, for exporters, the highest lending interest rate will be 15 percent per annum. The borrowers must have credit rating at Grade A and higher with high export turnover via BIDV and commit to sell foreign currency for BIDV. For enterprises in sector of agriculture and rural development, the maximum lending interest rate will be 15.5 percent per year and it will be 14.5 percent per year for unfavourable firms caused by natural disasters. Thus, the bank has reduced the lending interest rate in dong for the fifth consecutive time in the last four months of 2011. Tung said that, so far, BIDV's total outstanding loans reached 270 trillion dong, up 16.5 percent from the end of 2010 and the proportion of long term debts has been maintained at less than 40 percent. Dao Le Nguyen, member of the bank's director board, said the bank's lower lending interest rate is to share difficulties with enterprises but his bank's profit target for the whole year at 4.2 trillion dong will be still ensured.

Source: www.intellasia.net/news/articles/finance/111351093.shtml