Vietnam Central bank introduces new Benchmark rate at 8.5%
Friday, 19. December 2008, 10:40:35
Dec 19 Sate Bank of Viet Nam announces Decision No 3161/QD-NHNN, the new basic interest rate is cut down from 10% to 8.5 % per year, applied from Dec 22, 2008.
This is the second time that prime rate was slashed down in December. The Prime rate was cut off on Dec 3, from 11% to 10%.
SBV explains the slashing down of basic interest rate is to contribute to the implementation of decrees # 30/2008/ NQ-CP dated Dec 11 regarding solutions to prevent economic recession, to maintain suitable & sustainable growth rate, and to ensure the social securities.
As the basic rate cut down, ceiling of loans rate, calculated as 150% of prime rate, was reduced from 15% to 12.75% per year, applied for all financial organisations that give loans in VND from Dec 22.
Bench mark rate 'jumped down' the second time in a month, marking government effort in facilitating the economy. Picture: Customer withdraws cash from Agribank, Hanoi
- Decision # 3159/QD-NHNN Dated Dec 19 applied from Dec 22: Refinancing interest rate decreases from 11% to 9.5% per year; discount rate decreases from 9% to 7.5 % per year; overnight rate in inter-banks electronics payment, and loans for balancing account from SBV to other banks from 11% to 9.5 % per year.
- Decision # 3162/QD-NHNN dated Dec 19 applied from Dec 22: for adjustment of compulsory reserves interest rate for VND decreases from 9% to 8.5% per year.
- Decision # 3160/QĐ-NHNN dated Dec 19, applied from Dec 22: Interest rate for compulsory State Bank treasury bill in VND decreases from 13% to 4.5% per year.
- Decision # 3158/QĐ-NHNN dated Dec 19, applied from Dec 22 for adjustment of percentage of compulsory VND amount for financial organisations as follows:
- Compulsory rate for term under 12 months:
+ For State commercial banks (excluding Bank for Agriculture & Rural development - Agribank); Vietcombank; Commercial Joint Stock banks in Urban area, Joint venture banks, Foreign banks branches; Financial companies, is 5% on total amount of compulsory deposit amount.
+ For Bank for Agriculture & Rural development - Agribank, is 2% on total amount of compulsory deposit amount.
+ For Commercial Joint stocks banks in rural area; for Peoples Centre Financial Trust Fund; corporate banks is 1% on total amount of compulsory deposit amount.
- Compulsory rate for term over 12 months:
For State commercial banks (excluding Bank for Agriculture & Rural development - Agribank); Vietcombank; Commercial Joint Stock banks in Urban area, Joint venture banks, Foreign banks branches; Financial companies, Peoples Centre Financial Trust Fund; corporate banks is 1% on total amount of compulsory deposit amount./.
This is the second time that prime rate was slashed down in December. The Prime rate was cut off on Dec 3, from 11% to 10%.
SBV explains the slashing down of basic interest rate is to contribute to the implementation of decrees # 30/2008/ NQ-CP dated Dec 11 regarding solutions to prevent economic recession, to maintain suitable & sustainable growth rate, and to ensure the social securities.
As the basic rate cut down, ceiling of loans rate, calculated as 150% of prime rate, was reduced from 15% to 12.75% per year, applied for all financial organisations that give loans in VND from Dec 22.
Bench mark rate 'jumped down' the second time in a month, marking government effort in facilitating the economy. Picture: Customer withdraws cash from Agribank, Hanoi - Decision # 3159/QD-NHNN Dated Dec 19 applied from Dec 22: Refinancing interest rate decreases from 11% to 9.5% per year; discount rate decreases from 9% to 7.5 % per year; overnight rate in inter-banks electronics payment, and loans for balancing account from SBV to other banks from 11% to 9.5 % per year.
- Decision # 3162/QD-NHNN dated Dec 19 applied from Dec 22: for adjustment of compulsory reserves interest rate for VND decreases from 9% to 8.5% per year.
- Decision # 3160/QĐ-NHNN dated Dec 19, applied from Dec 22: Interest rate for compulsory State Bank treasury bill in VND decreases from 13% to 4.5% per year.
- Decision # 3158/QĐ-NHNN dated Dec 19, applied from Dec 22 for adjustment of percentage of compulsory VND amount for financial organisations as follows:
- Compulsory rate for term under 12 months:
+ For State commercial banks (excluding Bank for Agriculture & Rural development - Agribank); Vietcombank; Commercial Joint Stock banks in Urban area, Joint venture banks, Foreign banks branches; Financial companies, is 5% on total amount of compulsory deposit amount.
+ For Bank for Agriculture & Rural development - Agribank, is 2% on total amount of compulsory deposit amount.
+ For Commercial Joint stocks banks in rural area; for Peoples Centre Financial Trust Fund; corporate banks is 1% on total amount of compulsory deposit amount.
- Compulsory rate for term over 12 months:
For State commercial banks (excluding Bank for Agriculture & Rural development - Agribank); Vietcombank; Commercial Joint Stock banks in Urban area, Joint venture banks, Foreign banks branches; Financial companies, Peoples Centre Financial Trust Fund; corporate banks is 1% on total amount of compulsory deposit amount./.
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