Governor seeks cuts to medium and long-term rates.
On June 24 the State Bank of Vietnam (SBV) held a preliminary meeting on summarizing the operations of the banking sector during the first half of the year and implementing plans for the second half.
SBV Governor Nguyen Van Binh asked related government agencies and financial institutions to lower average medium and long-term interest rates by 1-1.5 per cent for the remaining six months of the year.
He said that this was an important task set at the beginning of the year.
Banks have set interest rates at 6.8-7 per cent per annum and the 15-year maturity on government bonds is still around 7 per cent, which provide sound conditions for financial institutions to lower their interest rate, Governor Binh said.
He also indicated that targeted credit growth for year is set at 13-16 per cent, even though the first-half figure was 6.09 per cent.