Nhan Dan - The State Bank of Vietnam (SBV) may cut the interest rate cap on deposits in Vietnamese dong by two percentage points to 9% this year.
This information was announced yesterday at a meeting between the SBV and 14 commercial banks to discuss ways to inject capital into the Vietnamese economy.
The central bank said it is also considering imposing an interest rate cap of 12-13% per annum on short-term loans while interest rates for medium- and long-term loans are subject to negotiation.
According to SBV statistics, credit growth shrank by 0.2% as of May, compared to December 31, 2011.
In addition to interest rate cuts, the SBV has required commercial banks to provide preferential loans for agricultural production and other encouraged sectors.
The SBV said it plans to establish a company to buy bad debts from commercial banks, a move aimed at making lender balance sheets healthier so that they can boost loans to enterprises in the future.
The central bank also proposed setting up a fund to help low and medium income earners buy homes in order to thaw the frozen property market.