SBV to issue regulations on negotiable interest rate

VGP – The State Bank of Việt Nam (SBV) will issue an ordinance stipulating Vietnamese-currency loans with negotiable interest rates provided by the commercial banks.

April 10, 2010 8:23 AM GMT+7

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The issuance, according to the SBV, is a move to secure macro-economic stability, curb inflation and ensure the economic growth rate of 6.5% in 2010.

The central bank has required all commercial banks to provide information about their currently-applied negotiable interest rates.

The data from the SBV show that, between March 26 and April 1, the negotiable interest rate for medium and long-term loans in Vietnamese currency, imposed by State-run commercial banks, was 14-16%. The figure stood at 16-18% for joint-stock banks.

In February, the SBV released Ordinance 07/2010/TT-NHNN permitting credit organizations to apply negotiable interest rate for their medium and long-term loans given to business, production, service and investment activities.

By Xuân Hồng