On March 14, 2023, the State Bank of Vietnam issued two decisions related to the management of interest rate, which are: Decision 313/QD-NHNN ("Decision 313") and Decision 314/QD-NHNN ("Decision 314"). Given the current situation, these decisions are considered a prompt action to support enterprises through difficulties and to promote production and business.
Under Decision 313, the State Bank of Vietnam decided to reduce 01% of the rediscount rate (from 4.5%/year to 3.5%/year) and overnight lending rate in inter-bank electronic payment and interest rate for loans for covering the capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions and foreign bank branches (from 7%/year to 6%/year).
Pursuant to Decision 314, the State Bank of Vietnam decided to reduce by 0.5% the maximum short-term lending interest rate in Vietnamese dong applied to borrowers to meet the capital needs of a number of economic sectors and sectors (serving agricultural and rural development; implementing export business plans; serving the business of small enterprises and just; development of supporting industries; operating the business of high-tech application enterprises). Specifically, the State Bank of Vietnam required credit institutions and foreign bank branches to apply short-term lending interest rates in Vietnamese dong not exceeding 5.0%/year (down from 5.5%/year) and the People's Credit Fund of Microfinance Institutions to use short-term lending interest rates in Vietnamese dong not exceeding 6.0%/year (down from 6.5%/ year).
Interest rates applied to credit contracts and loan agreements signed before the effective date of Decision 314 shall continue to be implemented in accordance with signed credit contracts and loan agreements.
Decision 313 and Decision 314 take effect from March 15, 2023, and replace the previous corresponding decisions.
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