Dollar Ling Rates Still High Despite Recent Reduction
Current interest rates on U.S. dollar loans offered by local commercial banks remain high and unreasonable despite declines in recent weeks, Business Forum newspaper published by the Vietnam Chamber of Commerce and Industry reported July 25.
The paper also quoted analysts as saying that the rates are higher based on the suffering strength of enterprises and the relation between domestic and international monetary markets.
While the worlds average U.S. dollar ling rate is about 5 per cent, Vietnamese companies still suffer 8 per cent-10 per cent per annum, even 12 per cent, the analysts said.
On July 9, Libor interest rate for the 12-month term was recorded at 3.22 per cent per annum and six months at 3.0975 per cent per annum while six-month Sibor interest rate was 3.274 per cent.
In line with international and local norms, US ling rates of Vietnamese banks equaled to Libor and Sibor rates with the same term, adding a free of 1.5 per cent-2.5 per cent a year.
However, the final ling rate that borrowers have to suffer is too high, which has affected strongly to companies business and production operation, especially important projects in need of huge U.S. dollar volume to import machines and equipments.
In a move to lower U.S. dollar ling rates, local commercial banks have proposed the State Bank of Vietnam to reduce compulsory reserve ratio of U.S. dollar deposits. But the proposal was rejected due to foreign currency ling growth is still high.
From July 14, South-Eastern Asia Commercial Joint Stock Bank reduced the U.S. dollar deposit rate with a term of seven months from 7 per cent-8 per cent per annum down to 6.0 per cent a year.
Meanwhile, some other commercial banks have tency to continue lowering by 0.2-0.5 percentage point per annum slightly in coming days. (Business Forum)
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