VietNamNet Bridge - The US Federal Reserve may adjust the prime interest rate once more, according to Can Van Luc, chief economist of the Bank for Investment & Development of Vietnam (BIDV). The interest rate increase won't have big impacts on the economy International mass media reports that the FED plans to lift the interest rate three times in 2018 to 2.1 percent per annum by the end of this year. The current interest rate is 1.25-1.5 percent. However, Luc believes the FED is likely to adjust the interest rate four times instead of three. He noted that the amount of money pumped into the US economy as a result of Trump’s policies is relatively high in the context of price increases and the weak dollar. This could be why the US FED has raised the interest rates to curb the inflation rate at below 2 percent. An analyst commented that the interest rate increase does not have a big impact on the global economy as it had in the past, because the adjustment is … [Read more...] about Vietnam should prepare for US Fed’s rising prime interest rate
Interest rates
Interest rate for social housing loans to be 4.8 per cent per annum
For instance, those who want to ask for a loan to buy social housing or repair their houses will be eligible for interest rate at 4.8 percent per annum. Interest rate for overdue debt will be 130 percent of lending interest rate. The minimum repayment term is 15 years after the first loan is disbursed. If customers want to borrow a loan with a shorter term, they can negotiate with lending bank. By LAM NGUYEN – Translated by UYEN PHUONG Tags: Interest rate social housing loans Vietnam Bank for Social Policies … [Read more...] about Interest rate for social housing loans to be 4.8 per cent per annum
SBV takes measures to reduce lending interest rates
(VEN) - The State Bank of Vietnam (SBV) has taken various measures in order to lower lending interest rates. The Southeast Asia Joint Stock Commercial Bank (SeABank) is providing preferential loans for enterprises worth VND1.5 trillion. Accordingly, SeABank charges annual lending rates of 7.5 percent for three-month loans and 8.0 percent for six-month short-term loans in Vietnamese dong. The bank also gives out short-term US dollar loans at an annual interest rate of 3.0 percent for six months. The program aims to provide enterprises with short-term loans to supplement working capital for trade and production activities. PGBank is offering lending interest rates for individual customers of 9.49 percent a year for short-term loans; and 7.49 percent a year in the first six months, 8.99 percent a year in the first 12 months, and 9.49 percent a year in the first 24 months for medium- and long-term loans. TPBank is giving interest rates of 7.2 percent a year in the first six months for … [Read more...] about SBV takes measures to reduce lending interest rates
Gap widens in deposit interest rates
A gap has opened up between deposit interest rates offered by different categories of banks due to differences in their liquidity, cash demand and status. Small- and medium-sized banks have hiked their interest rates. Sai Gon Commercial Bank has increased its rates for six-month deposits to 7.65 per cent for customers aged under 40 and 7.7 per cent for older ones. Viet Capital Bank, GPBank, Bac A Bank, NCB, and DongA Bank have raised their six- month rate to 7 per cent or above. But at large State-owned banks like BIDV, VietinBank and Vietcombank, they remain at 5.1-5.3 per cent. Mid-sized lenders offer 6.8 per cent. The difference in rates between small and large lenders is 2-2.6 points for six-month deposits. Analysts have attributed this to differences in liquidity, cash demand and health of banks. According to the National Financial Supervisory Committee (NFSC), liquidity is abundant at strong banks. “Some small credit institutions and those restructuring are facing … [Read more...] about Gap widens in deposit interest rates
Interest rates expected to be lowered
Lending interest rates have room to be reduced further due to the support of positive factors including the recent Government resolution that requires the State Bank of Vietnam (SBV) to strive for lowered interest rates. According to data from the National Financial Supervisory Commission, deposits from economic organisations and individuals have increased since January this year, which was up 0.5% compared to the end of 2017. Meanwhile, the average deposit interest rates in Vietnamese dong for over 12-month terms hovered around 6.55% per year in the first two months of this year, up 0.03 percentage point compared to the end of 2017. Several joint stock commercial banks pushed their long-term interest rates higher, including Viet Capital Bank, with the long term interest rates listed at 8.3% per year for 13-month term deposits, up 0.3% compared to the end of 2017 and 8.5% per year for 15-month term deposits. The slight increase in long-term deposit rates in the first months of this … [Read more...] about Interest rates expected to be lowered