Local Banks Agree to Lower Dong Deposit Rates to 11 per cent/Year

Local banks and credit organizations, which are members of Vietnam Bankers Association (VNBA), reached a consensus Mar 22 in Hanoi to lower annual dong deposit rates in to 11 per cent from current 12 per cent.

 

If southern Vietnam-based banks and credit institutions agree to adopt the move today Mar 24 at a conference in Ho Chi Minh City, the deposit rates in dong will be officially effective from April 1 this year, the Vietnam News Agency said.

 

General Secretary of VNBA Duong Thu Huong said that local banks have followed the decision by the State Bank of Vietnam not to race to hike the rates to over the 12 per cent/year.

 

Liquidity of the entire banking systems is ensured as Mar 17, the VNBA noted.

 

After buying compulsory treasury bills valued at VND20.3 trillion and raising reserves rates, the liquidity of the local banks reached more than VND14 trillion.

 

The inflation in March this year is forecast to rise 9.01 per cent against December last year, the local Labor newspaper said.

 

Cao Sy Kiem, a member of the Advising Central Monetary Policy Council told the local Ho Chi Minh City Law newspaper that the government of Vietnam will have no choice but to choose measures to adjust the economic growth targets to curb jumping inflation to 12 per cent this year.

 

Le Dang Doanh, a leading economist, recently proposed that the government should cut 15 per cent-30 per cent of construction projects to cope with inflation. (VNA)