Transactions being carried out at a VPBank branch. (Photo: VNA) Hanoi (VNS/VNA) - The State Bank of Vietnam should consider developing a roadmap to remove regulations on credit growth limits and interest rate caps as it isn’t suitable due to the country’s achievements in stabilising the nation’s economy, according to experts. The General Statistics Office (GSO) reported that the country’s GDP growth reached 7.38 percent in the first quarter of 2018, the best first-quarter performance in the last ten years, backed by growth in manufacturing and agriculture, as well as momentum from high GDP growth rates of 7.46 percent and 7.65 percent in third and fourth quarters of 2017. Meanwhile, January-March average annual inflation was also controlled at 2.82 percent, GSO reported. Based upon this positive growth, Nguyen Xuan Thanh, Director of the Fulbright Economics Teaching Programme, suggested that it is time to remove the regulations and replace them by indirect … [Read more...] about Interest rate caps not needed: experts
Interest rates
Interest rates for property loans pick up
Interest rates for property loans pick up Interest rates for property loans have inched up as property prices in many places have unusually rocketed. PHOTO: THANH HOA HCMC – Interest rates for property loans have inched up as property prices in many places have unusually rocketed. Eximbank earlier this month started applying a new rate for property loans, which was up by one percentage point to 11% per year. Nguoi Lao Dong newspaper quoted an employee at Eximbank’s Thu Duc branch as saying that the bank has two lending packages at 11% per year. If loans are fully repaid before maturity, borrowers would pay a fine equivalent to 1% of the repayment. Eximbank is currently not providing any preferential credit package for the property sector or individuals seeking loans to buy houses. This rate is applicable all property loans, including loans used to build, repair and buy homes. Borrowing demand of buyers of houses and land in districts 2, 9 and Thu Duc are on … [Read more...] about Interest rates for property loans pick up
Vietnam should prepare for US Fed’s rising prime interest rate
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 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