Banks reduce over 536 million USD worth of interest rates for pandemic-hit borrowers

Illustrative image (Photo: VNA)

Sixteen banks in Vietnam reduced a total of 12.23 trillion VND (536.2 million USD) in interest rates for borrowers affected by the COVID-19 pandemic from July 15 to September 30, equivalent to 59.36 percent of their commitments, according to the State Bank of Vietnam.

Accordingly, the Bank for Agriculture and Rural Development of Vietnam (Agribank) cut the largest amount, of 4.88 trillion VND. Loans worth 1.27 quadrillion VND enjoyed interest rate reductions, benefiting over 3.18 million customers.

It was followed by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), with 1.97 trillion VND and 1.9 trillion VND cut down, respectively.

Earlier in early July, following the Government’s Resolution 63/NQ-CP and directions of the SBV, through the Vietnam Banks’ Association, 16 commercial banks agreed to cut the lending rates for enterprises hard hit by the COVID-19 pandemic from July 15 until the end of this year, with the total amount of reduced interest of 20.6 trillion VND.

Four State-owned commercial banks committed to provide a support package worth 4 trillion VND to reduce interest rates and 100 percent of service fees for customers in localities imposing social distancing under the Prime Minister’s Directive 16./.