Headlines 23/11/2019 14:00 CH

New interest rate regulations to take effect from November 19, 2019

Ngọc Duy

The State Bank of Vietnam has recently promulgated the Decision No. 2415/QD-NHNN and the Decision No. 2416/QD-NHNN on interest rates imposed by credit institutions and state bank branches in accordance with the Circular No. 07/2014/TT-NHNN and Circular No. 39/2016/TT-NHNN Below are specific regulations:

- Regulatory maximum interest rates on short-term Vietnamese-dong loans to be applied to borrowing customers are covered in clause 2 of Article 13 in the Circular No. 39/2016/TT-NHNN as follows:

+ As for people’s credit funds and microfinance organizations, the regulatory maximum interest rate will be 7.0%/year (decreased by 0.5%/year compared to earlier regulations);

+ As for other credit institutions and state bank branches, the regulatory maximum interest rate will be 6.0%/year (decreased by 0.5%/year).
 

Mr. Bui Tuong Vu, Legal Advocate and Director of THƯ VIỆN PHÁP LUẬT Co., makes sure that such decreases in lending interest rates will help persons and entities cut down their interest amounts paid to banks, and boost their business in the upcoming Lunar New Year's holidays.


- Regulatory maximum interest rates on Vietnamese-dong deposits that entities (except credit institutions or state bank branches) and persons make at credit institutions and state bank branches will be adjusted as follows:

+ As for non-term deposits and fixed-term deposits that mature for shorter than 1 month, the stated interest rate will be 0.8%/year (decreased by 0.2%/year);

+ As for fixed-term deposits that mature for between 1 month and less than 6 months, the stated interest rate will be 5.0%/year; in particular, the state interest rate imposed by people's credit funds and microfinance institutions will be 5,5%/year (both will be decreased by 0.5%/year).

Decision No. 2415/QD-NHNN and Decision 2416/QD-NHNN are entering into force from November 19, 2019 (replacing Decision No. 2173/QD-NHNN dated October 28, 2014 and Decision No. 1425/QD-NHNN dated July 7, 2017, respectively).

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