VietinBank chairman Pham Huy Hung announces rate cuts for old loans at the press briefi ng on Wednesday - Photo: Courtesy of VietinBank

Vietnam Bank for Industry and Trade, or VietinBank, on Wednesday announced that it would lower interest rates of old credit contracts to below 15% per annum from July 15 and provide new loans for enterprises at a rate of 12% per annum.

Speaking at the press briefing in Hanoi on Wednesday, VietinBank chairman Pham Huy Hung said falling CPI (consumer price index) in recent months is a good condition for further rate cuts, supporting enterprises in expanding business and production.

VietinBank on the previous day asked its entire network to review old credit contracts and lower the interest rates for these contracts to below 15% to share difficulties with enterprises and households. The bank also told its branches to combine with customers to evaluate their debt solvency and reschedule loans.

Le Hung Dung, chairman of Eximbank, on Wednesday told the Daily that the bank had also made the same move. Dung said this policy aims to help enterprises pay old debts and access new loans to maintain business. Lower lending rates will also help the lender improve credit growth this year, he said.

The Saigon Times Daily