State Bank holds line on interest rates
(03-06-2008)
HA NOI — The State Bank of Viet Nam announced yesterday it would retain benchmark rates in place, with the 12-per-cent prime rate, 13-per-cent refinancing rate and 11-per-cent discount rate all left unchanged.
Since the last rate increase on May 19, bank officials said, market lending rates have been becoming more stable, ranging from 15.6-18 per cent per year for short-term loans through State-owned banks, and from 17-18 per cent yearly for mid and long-terms loans.
Borrowing costs for short-term loans through private commercial banks stretch from 14.8-18 per cent annually, and from 16.8-18 per cent for mid and long-terms loans.
Lending rates cannot pass a maximum of 18 per year by law. However, there are still concerns about additional fees and costs charged by banks, pushing the real lending rate to over 20 per cent.
Meanwhile, interbank rates over the past two weeks have fluctuated at 12-18 per cent.
Dong deposits
Deposit interest rates have also shown signs of levelling out.
State-owned banks were offering about 3.6 per cent per year for non-term deposits, 12.71 per cent for three-month term deposits, 12.97 per cent for six months and 13.39 per cent for one year.
Private commercial banks were offering consumers slightly better deals, with 4.38 per cent on standard deposits and up to 14.23 per cent on six-month term deposits. None so far have popped their heads over the 15-per-cent barrier, despite a legal limit of 18 per cent. — VNS
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