Banks are boosting up loans with plenty of promotions.
By the end of June, banks promote paying out to the market by reducing rates. This is because the fact that banks have been suffering from low credit growth due to too high interest rates and low demands for loans.
Many banks have re-establish mortgage loans, in which HDBank offers negotiable interest rate of 12% a year. On the basis of oversea contracts, the bank would support 90% of L/C value for L/C payments and 80% value of contracts paid by D/P, D/A, and CAD. HDBank also offers up to 95% discount of documents set of immediate L/C.
The same actions are made across ACB, SeABank, DaiAbank, Sacombank, Agribank, Vietcombank, and so on.
Information from banks confirms their continuous decrease of deposit interest rates for VND loans interest rates reduction.
In general, banks target to average deposit interest rate of 10% a year as ruled by the government.
Deposit interest rates will be adjusted in the coming months to 10.5% a year and to 10% a year by September 2010. State Bank has informed that VND deposit interest rates in banks have reduced by 0.7% while VND loans interest rates have reduced by 1%. Currently average deposit interest rate in commercial banks is at 11% a year while at 13.4% a year for loans interest rate.
The State Bank also confirms good liquidation of bank system with increasing deposits by the end of June 2010 higher than credit growth. Interest rates State’s bonds are on decline (3-year bonds rate declined to lower than 10%). Controlled inflation supports interest rate reduction road maps and stimulates credit.
Reported by Truc Huynh – Translated by Vi Bao
