7-3-2024 (HANOI) The State Bank of Vietnam has received a directive from Prime Minister Pham Minh Chinh to maintain low interest rates and facilitate financial access for businesses, according to reports from local media on Thursday.
The prime minister instructed the central bank to review the credit issuance outcomes of financial institutions nationwide, including commercial banks and credit institutions, with the aim of stabilizing interest rates and promoting credit growth in 2024.
The key objectives for the sector in 2024 include reducing loan interest rates and improving credit accessibility to support the development of production and businesses. Additionally, the focus will be on ensuring sufficient and healthy credit and foreign exchange reserves, as stated in a report by Vietnam News, a local newspaper.
In 2023, the central bank of Vietnam implemented four policy interest rate cuts ranging from 0.5 to 2 percentage points. These reductions led to approximately a 2 percentage point decrease in deposit and lending rates compared to the end of 2022.
By the end of 2023, lending rates for priority sectors had dropped to below 4 percent annually, while the average deposit rate stood at 3.5 percent per year.
