Hanoi (VNS/VNA) - Commercial banks have continuously announcedlending interest rate reductions to support and accompany customers to overcomethe adverse impacts of the COVID-19 pandemic.

Vietcombank was the latest to announce a rate cut for loans from August 18,2021 to December 31, 2021 for all businesses and individuals severely affectedby the pandemic in 19 southern provinces and cities and currently applyingsocial distancing according to the Government’s Directive 16.

This was Vietcombank's ninth interest rate reduction to support businesses andpeople affected by the pandemic and natural disasters since the beginning of2020.

Specifically, Vietcombank has continued to reduce interest rates of up to 0.5 percentper year for all outstanding loans of customers in Ho Chi Minh City and Binh Duongprovince. The decreasing rate for customers in other southern provinces andcities under the application of social distancing including Dong Nai, Can Tho, BinhPhuoc, Tay Ninh, Ba Ria – Vung Tau, Tien Giang, Long An, Vinh Long, Dong Thap, BenTre, Hau Giang, An Giang, Bac Lieu, Soc Trang, Tra Vinh, Ca Mau, Kien Giang is0.3 percent per year.

Previously, Vietcombank implemented a policy of reducing interest rates worthup to 1.8 trillion VND to support customers affected by the pandemic nationwidefrom July 15, 2021 to December 31, 2021 with a reduction of 0.5-1 percent peryear depending on the customers.

BIDV has announced to set aside up to 1 trillion VND to reduce lending interestrates for existing loans, and deploy new loan packages with low interest ratesfrom this month to December 31, 2021.

Specifically, BIDV’s interest rate has been reduced by 0.5-1.5 percent per yearfor existing outstanding loans up to July 15, 2021 of enterprises whosebusiness and production have faced difficulties due to the impact of theCOVID-19 pandemic. The maximum reduction has been applied for loans that havebeen heavily affected in industries including transportation, healthcare,education, accommodation services, restaurant services, hotels and resorts.

Meanwhile, at VietinBank, a 20 trillion VND preferential credit package with aninterest rate of 4.0 percent per year has just been added, increasing the totalvalue of the package to 150 trillion VND.

Agribank has also continued to spend 5.5 trillion VND to cut lending rates forcustomers until the end of this year.

Many other banks such as ACB, SeABank, MSB, HDBank, Sacombank have alsoannounced a popular interest rate reduction of 1 percent per year for customerswith difficulties, applied from July 15, 2021.

Regarding the implementation of interest rate reduction and free bankingservices provision to support customers affected by the pandemic, the StateBank of Vietnam (SBV) recently issued Official Dispatch No. 5901/NHNN-TD,requiring commercial banks to reduce lending interest rates as per theirprevious commitments.

Previously, under the SBV’s direction, the Vietnam Banks Association held ameeting with the participation of 16 commercial banks who voluntarily agreed tocut interest rates of about 20.3 trillion VND from now until the end of thisyear, depending on the size of the bank, to support the economy amid thepandemic.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu said the central bankwould strengthen supervision of the implementation of the dispatch./.