On May 23, 2023, the State Bank of Vietnam issued two decisions related to the management of interest rates, which are: Decision 950/QD-NHNN on refinancing interest rates, rediscounting interest rates, overnight lending interest rates in interbank electronic payments and interest rates for loans to cover the capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions and foreign bank branches (“Decision 950”); and Decision 951/QD-NHNN on the maximum interest rates for deposits in Vietnamese dong of organizations and individuals at credit institutions and branches of foreign banks as prescribed in Circular No. 07/2014/TT-NHH dated 17/3/2014 (“Decision 951”).
Accordingly, the interest rates shall have the following adjustments:
1. Reducing refinance interest rates, overnight lending interest rates, and interest rates for loans to cover the capital shortfall for credit institutions and foreign bank branches:
|
Content |
Decision 574 |
Decision 950 |
|
Refinance interest rates |
5,5% |
5,0% |
|
Rediscount interest rates |
3,5% |
3,5% |
|
Overnight lending interest rates, interest rates for loans to cover the capital shortfall |
6,0% |
5,5% |
2. Reducing the maximum interest rates for deposits in VND deposits with terms from 1 month to 6 months:
|
Content |
Decision 575 |
Decision 951 |
Notes |
|
The maximum interest rates for demand deposits or term deposits of less than 1 month |
0,5% |
0,5% |
Deposits arising before May 25, 2023, will remain until the end of the term. At the end of the agreed term, if organizations or individuals do not come to receive the interest, the interest rates according to Decision 951. |
|
The maximum interest rates for deposits with terms from 1 month to less than 6 months (excluding People's Credit Funds and Microfinance Institutions) |
5,5% |
5,0% |
Decision 950, Decision 951 takes effect from May 25, 2023, replacing Decision 574/QD-NHNN (“Decision 574”) and Decision 575/QD-NHNN (“Decision 575”), which have been updated by ATA Legal Services previously. The issuance of those decisions is part of the plan to reduce deposit interest rates, creating conditions to lower lending interest rates, supporting enterprises to overcome difficulties and recover production and business.
Comment: