VietNamNet Bridge – While the central bank makes every effort to ease the lending interest rates as soon as possible to rescue the enterprises thirsty for capital, commercial banks still remain unhurried.
Deposit interest rates went down immediately…
| Businesses need capital at low interest rates |
The State Bank of Vietnam continuously released the decisions to slash the ceiling deposit interest rate from 14 percent to 13, 12 and then 11 percent per annum just within a short time.
The latest decision on interest rate reduction to 11 percent, taken effect since May 28, has been followed by commercial banks immediately.
The big banks like Vietcombank, Vietinbank, SeAbank, VP Bank, Eximbank and ACB all have quoted the ceiling deposit interest rate at 11 percent, or one percent lower than the previous rate.
Vietcombank is now paying 11 percent to 6-12 month term deposits and 10 percent for the longer terms deposits (2 year or longer). The bank has also quoted the lending interest rates at between 15.3 and 15.7 percent per annum.
SeABank is also quoting the interest rate of 11 percent for 6 month-2 year term deposits, while paying less for longer term deposits.
Meanwhile, a Vietcapitalbank’s branch on Ba Trieu Street in Hanoi was still seen quoting the ceiling interest rate at 12 percent at 11 am of May 28, though the decision on new ceiling interest rate took effect as of 0 am of the day. On the websites of some banks like Techcombank and Phuong Tay, one still could see the quoted ceiling interest rate of 12 percent per annum.
The manager of a joint stock bank has noted that people now mostly make 3-6 month term deposits instead of one-week or 1-month term deposits, since they anticipate the downtrend of the interest rate performance.
The banker also said that banks now have profuse capital and good liquidity; therefore, they have obeyed the central bank’s decision and do not intend to mobilize capital at any costs.
…but lending interest rates stay sky high
As the input capital cost has decreased, banks have also promised to lend at the interest rates of 15-16 percent. However, businesses have said the interest rates have been existing on… paper only.
V, Director of a company located in Thanh Xuan district in Hanoi said that on May 28, she contacted some banks in Hanoi to ask for loans, but she was told that she would have to pay 19-21 percent.
Pham Anh Tuan, Director of a Hai Duong-based enterprise has confirmed that no bank accepts to provide loans at the interest rates lower than 16 percent.
According to Tran Van Thinh, Director of an import-export company in Ninh Binh province, banks told him that they would consider the company’s business situation and other conditions to decide whether his company can enjoy the preferential interest rates. However, he does not know what requirements he needs to satisfy to be eligible for the preferential loans.
“In general, it’s impossible to access bank loans at the interest rates of less than 16 percent for now,” he concluded.
“They (bankers) know that businesses now need capital, and we will have to accept the interest rates to be set up by them,” he added.
SeAbank is reportedly providing two credit packages applied to those clients who want to borrow money to buy houses and to import-export small and medium companies. However, Tran Thi Minh Tam, a bank officer, said via the hot line that the bank does not fix the same interest rate for all cases, but it would consider every specific case to decide the interest rates.
Source: Tien phong