The move is aimed at supporting economic growth as it will contribute to reducing the cost of funding for commercial banks, thereby helping them cut lending rates for domestic firms. Accordingly, OMO rates were lowered by 25 basis points to 4.75 per cent per annum. The last cut was made in March 2014 when the rate was trimmed by 50 basis points to 5 per cent. Previously, at a meeting of the banking industry last week, Governor of SBV Le Minh Hung also said that after the meeting, the central bank would issue Resolution 01 on implementing tasks of the banking sector in 2018, in which it would instruct credit institutions to consider a rate cut for lending interest. He said the central bank would also cut the lending rate in the OMO (open market operations) market to aid institutions. According to experts, the move will have positive impacts on the monetary market, especially when capital demand is rising significantly to meet consumption and payments given the approaching Lunar New Year. Some commercial banks such as Vietcombank, Agribank and Vietinbank have also announced reductions in their lending interest rates over the past few days, as instructed by the central bank, to spur economic growth. Accordingly, interest rates for short-term dong loans will be lowered to 6 per cent per year. Apart from new loans taken this year, the rate would also apply to existing loans with interest rates higher than 6 per cent in five priority sectors of agriculture businesses,… [Read full story]
HSBC says further rate cuts unlikely Cong Minh By Cong Minh - The Saigon Times Daily HCMC - The State Bank of Vietnam (SBV) is unlikely to lower rates further after such a move last week due to rising inflationary pressures, according to HSBC Global Research. HSBC Global Research explained in its report dated July 19 that inflationary pressures had elevated due to the recent fuel price hike, potential rise in public service costs and cost pressures caused by the recent dong devaluation. Fuel retail prices increased again in Vietnam last week, the third time in just more than one…... [read more]
HSBC: Central bank likely cuts OMO rate furtherDinh Duy By Dinh Duy - The Saigon Times Daily HCMC – HSBC Bank has predicted that the central bank would mull another cut of the open market operations (OMO) rate to beef up domestic demand and growth thanks to low inflation this year. In a macro economic report released on September 4, HSBC said Vietnam is in the slow lane towards economic recovery. After expanding solidly since September 2013, the HSBC manufacturing PMI index eased markedly in August to 50.3 and the bank forecast next month’s performance to be lackluster as inventories…... [read more]
According to the General Department of Taxation under the Ministry of Finance, by mid-May 2012, this country had some 200,000 enterprises facing bankruptcy or temporary halt of operations. In particular, 79,000 enterprises were dissolved in line with legal procedures while more than 120,000 others are uncertain of their future. In other words, there are no official accurate reports on their operating situations from competent authorities. Meanwhile, the number of bankruptcy files lodged to the court is very small. Many companies have informed tax authorities of their temporary halt of operations, but many others have stopped their operations without any official…... [read more]
Index jumps on rate cut rumors Phuong Thao By Phuong Thao - The Saigon Times Daily HCMC – Rumors on possible interest rate cut coupled with other positive macro news buoyed sentiment on Wednesday, lifting the local market up for the second straight session with liquidity sharply improving. The VN-Index jumped 6.56 points, or 1.37%, against the previous session to close at 487.04 with GAS contributing over three points to the index. Liquidity on the Hochiminh Stock Exchange improved 48% and 75% in volume and value to 52 million shares worth over VND1 trillion. The put-through market turned active with…... [read more]
Policy rates cut furtherto boost growth By Hong Phuc - The Saigon Times Daily HCMC – The central bank’s policy rates were reduced by another percentage point on Sunday, representing an effort to stimulate economic growth through loosened monetary policy. In particular, the refinancing rate was lowered from 11% to 10%, while the discount rate was slashed from 9% to 8%. The overnight lending rate in inter-bank e-payment was pulled down from 12% to 11 %, according to Decision 1289 of the central bank issued last Friday. The analysts at Vietnam Capital Securities Co. (VCSC) said this decision would not…... [read more]
