Nhan Dan – Commercial banks in Vietnam have cut lending rates to below 15% for 70.9% of their total loans as of August 2, according to a report from the State Bank of Vietnam (SBV).
The central bank said that loans with annual rates lower than 10% account for 3.4% of total lending while loans with rates between 10% and 13% make up 18.5% of total outstanding loans.
Loans between 13% and 15% per annum account for 49.1%, while loans with rates higher than 15% fell to 29.1% of total lending, down 60% compared to July 15.
State-owned lenders made the deepest cuts and loans with rates above 15% fell to 6.9% from 61% of total lending as of July 15.
Earlier last month, SBV governor Nguyen Van Binh told commercial banks to cut rates on existing loans to below 15% to support struggling enterprises.