Average loan interest rate is only 8.9%/year

On the morning of June 21, the State Bank of Vietnam (SBV) announced information on the results of monetary policy management and banking activities in the first 6 months of 2023.

The State Bank of Vietnam has conducted monetary policy firmly, flexibly, proactively, promptly and effectively, contributing to controlling inflation, stabilizing the macro -economy and supporting and prioritizing growth promotion.

Average loan interest rate is only 8.9%/year

Regarding interest rate management, in the first two months of 2023, the State Bank of Vietnam kept the operating interest rates unchanged in the context of world interest rates continuing to increase and anchor at high levels, and domestic and international inflation developments remaining unpredictable.

To continue implementing the policy of the National Assembly , the Government, and the Prime Minister to reduce lending interest rates to remove difficulties for the economy, businesses, and people, from March 2023 to June 2023, the State Bank of Vietnam has continuously adjusted interest rates down 4 times with a reduction of 0.5 - 2.0%/year.

To date, the average VND lending interest rate is around 8.9%/year (down 1.0%/year compared to the end of 2022). Illustrative photo

Specifically, reduce 1.5%/year of refinancing interest rate and discount interest rate, reduce 2%/year of overnight lending interest rate in interbank electronic payment and lending to compensate for capital shortage in clearing payment of the State Bank for credit institutions and foreign bank branches; Reduce 0.5 - 1.25%/year of maximum interest rate for deposits in VND with term of less than 6 months; Reduce 1.5%/year of maximum short-term lending interest rate in VND of credit institutions for borrowers to meet capital needs serving a number of economic sectors and industries.

At the same time, the State Bank continues to encourage credit institutions to reduce costs to stabilize lending interest rates to support businesses in recovering and developing production and business.

With the management and direction measures of the State Bank, up to now, the interest rate level has basically stabilized, deposit and new lending interest rates tend to gradually decrease. The average deposit interest rate of commercial banks is at about 5.8%/year (down 0.7% compared to the end of 2022); the average lending interest rate in VND is at about 8.9%/year (down 1.0%/year compared to the end of 2022).

Stable exchange rate

Regarding exchange rate management, the State Bank continues to closely monitor the market situation to flexibly and appropriately manage exchange rates, and synchronously coordinate monetary policy tools to stabilize the foreign exchange market, contributing to controlling inflation and stabilizing the macro-economy. The domestic foreign exchange market and exchange rates have been relatively stable, market liquidity is smooth, and legitimate foreign currency needs are fully met. The State Bank has purchased foreign currency from credit institutions to supplement the state foreign exchange reserves.

Outstanding credit balance of the entire economy reached about 12.32 million billion VND.

In credit management, the SBV has managed credit reasonably, contributing to controlling inflation and supporting economic growth. In 2023, based on the economic growth target of about 6.5% in 2023 and inflation of about 4.5% set by the National Assembly and the Government, the SBV targets credit growth in 2023 at about 14-15%, with appropriate adjustments based on developments and actual situations; managing credit to meet the credit capital needs of the economy in order to contribute to controlling inflation and supporting economic growth.

At the same time, direct credit institutions to direct credit to production and business sectors, priority sectors and economic growth drivers according to the Government's policy; ensure safe and effective credit activities; strictly control credit in potentially risky sectors; create favorable conditions for businesses and people to access bank credit capital; continue to implement with the highest determination the policy of supporting 2% interest rate for businesses, cooperatives and business households in a number of sectors and fields according to Decree 31/2022/ND-CP of the Government.

In addition to credit management solutions, to enhance access to official credit and protect the legitimate rights and interests of people and businesses when borrowing from credit institutions, thereby contributing to limiting and repelling "black credit", in recent times, the State Bank has proactively implemented many specific solutions such as: Strongly and extensively implementing the bank-enterprise connection program to promptly remove difficulties and obstacles in accessing bank credit sources; Directing credit institutions to implement solutions to create favorable conditions for customers in accessing credit capital; diversifying banking products and services, simplifying lending procedures; Promptly issue Circular 02/2023/TT-NHNN dated April 23, 2023 regulating the restructuring of debt repayment terms and maintaining debt groups by credit institutions and foreign bank branches to support customers in difficulty according to the Government's direction in Resolution 50/NQ-CP and Resolution 59/NQ-CP.

Outstanding credit balance of the entire economy reached about 12.32 million billion VND. Illustrative photo

At the same time, the State Bank of Vietnam issued Directive No. 02/CT-NHNN dated May 23, 2023 on strengthening credit activities and implementing policies to restructure debt repayment terms and maintain debt groups to support customers facing difficulties as prescribed in Circular 02/2023/TT-NHNN; Directing commercial banks to implement a credit package of VND 120,000 billion from capital sources of commercial banks with lending interest rates 1.5% - 2% lower than the average lending interest rates of banks in the market in accordance with the Government's direction for investors, buyers of social housing, workers' housing, projects to renovate and rebuild old apartments, etc.

Regarding the program to support interest rates of 2%/year in 2022 - 2023 through the system of commercial banks for commercial loans for enterprises, cooperatives, and business households, the State Bank and commercial banks have actively and synchronously implemented it with a drastic and urgent spirit (through conferences, directives, answers, instructions, information, communication... continuously since the policy was issued until now).

Credit institutions are still dedicating resources from their own credit institutions to reduce interest rates, support customers to restore and develop production and business. Based on the identification of difficulties and obstacles in the process of implementing the program leading to low implementation results, the State Bank has promptly synthesized, evaluated, proposed recommendations and reported to the Government.

By June 15, 2023, the total outstanding credit balance of the entire economy reached about VND 12.32 million billion, up 3.36% compared to the end of 2022, up 8.94% over the same period last year. In particular, the credit structure continues to focus capital on production and business sectors, priority sectors according to the Government's policy, contributing positively to the country's GDP growth. Credit for potentially risky sectors is controlled.

Source: https://www.congluan.vn/lai-suat-cho-vay-binh-quan-chi-con-89-nam-post252566.html