Latest topics
Vietnam central bank says cutting lending rates not optional
Page 1 of 1
Vietnam central bank says cutting lending rates not optional
Vietnam central bank says cutting lending rates not optional
The State Bank of Vietnam will make sure that commercial lenders take its order seriously and cut lending rates on existing loans to below 15 percent, deputy governor Le Minh Hung said.
On July 7, the central bank asked commercial banks to reduce interest rates on outstanding loans and help struggling businesses. It said lenders must cut rates on existing loans to companies to below 15 percent.
Hung told Thanh Nien that many large banks have already lowered rates since mid-July but some others have not implemented the policy yet.
The central bank will deal with those who do not comply with its request, Hung said, asserting that "tough measures" would be taken "if necessary." Lenders will also be required to report their total loans at rates above 15 percent, he added.
Many businesses have complained that many banks have refused to cut rates. Some have offered a reduction in borrowing costs for only well-performing companies.
Hung said even though banks need to make decisions based on their own financial conditions, only supporting healthy companies "is not right"
Banks have to realize that this is the perfect time to lower rates on existing loans, he said, noting that keeping rates too high for companies that are already struggling to repay loans "will not help either of the two sides."
Vo Tri Thanh, deputy head of the Central Institute for Economic Management, a government think-tank, said there will be some sacrifice involved, but banks have to accept the fact that they need to bring interest rates down for long-term benefits.
On Friday, news website VnExpress cited State Bank Governor Nguyen Van Binh as saying that while banks will have to try their best to rescue businesses, they will not do so at all costs.
“Companies that, if rescued, would not have a chance of growing in the future, should be eliminated,” he said.
http://www.thanhniennews.com/index/pages/20120719-vietnam-central-bank-says-cutting-lending-rates-not-optional.aspx
The State Bank of Vietnam will make sure that commercial lenders take its order seriously and cut lending rates on existing loans to below 15 percent, deputy governor Le Minh Hung said.
On July 7, the central bank asked commercial banks to reduce interest rates on outstanding loans and help struggling businesses. It said lenders must cut rates on existing loans to companies to below 15 percent.
Hung told Thanh Nien that many large banks have already lowered rates since mid-July but some others have not implemented the policy yet.
The central bank will deal with those who do not comply with its request, Hung said, asserting that "tough measures" would be taken "if necessary." Lenders will also be required to report their total loans at rates above 15 percent, he added.
Many businesses have complained that many banks have refused to cut rates. Some have offered a reduction in borrowing costs for only well-performing companies.
Hung said even though banks need to make decisions based on their own financial conditions, only supporting healthy companies "is not right"
Banks have to realize that this is the perfect time to lower rates on existing loans, he said, noting that keeping rates too high for companies that are already struggling to repay loans "will not help either of the two sides."
Vo Tri Thanh, deputy head of the Central Institute for Economic Management, a government think-tank, said there will be some sacrifice involved, but banks have to accept the fact that they need to bring interest rates down for long-term benefits.
On Friday, news website VnExpress cited State Bank Governor Nguyen Van Binh as saying that while banks will have to try their best to rescue businesses, they will not do so at all costs.
“Companies that, if rescued, would not have a chance of growing in the future, should be eliminated,” he said.
http://www.thanhniennews.com/index/pages/20120719-vietnam-central-bank-says-cutting-lending-rates-not-optional.aspx
*****************
Being defeated is often a temporary condition. Giving up is what makes it permanent.
Marilyn Vos Savant
Yesterday would have been better, but today is a good day
Remember as always, JMHO
Rantings from just north of sixty
1alaskan- Elite Member
- Posts : 4668
Join date : 2011-06-21
Age : 41
Location : Planet far far away
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Yesterday at 6:02 am by Ditartyn
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Mar 23, 2024 9:25 am by swizzlestick
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej
» The second American Revolution has begun, God Bless Texas
Mon Jan 29, 2024 6:13 pm by kenlej
» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
Sun Jan 28, 2024 3:28 pm by Mission1st
» Tucker talking Canada
Wed Jan 24, 2024 6:50 pm by kenlej
» Almost to the end The goodguys are winning
Mon Jan 22, 2024 9:03 pm by kenlej
» Dinar Daily Facebook Page
Mon Jan 22, 2024 3:34 pm by Ponee
» The Fundamentals of Finance and Pimpy Live
Thu Jan 18, 2024 7:17 am by Dinarhater
» Why Won't the Iraqi Dinar Scam Die?
Wed Jan 17, 2024 5:19 pm by RamblerNash