Accordingly, the refinancing interest rate is lowered from 4.5% per annum to 4%, rediscount rate from 3% to 2.5%, overnight interest rate from 5.5% to 5% and interest rate via OMO from 3% to 2.5%.
The SBV also lowered the interest rate cap to 4% annually from 4.25% for deposits with maturities of one month to less than six months.
Credit institutions have so far restructured debt payment schedule for 270,000 customers affected by the pandemic with total outstanding loans worth VND355 trillion (US$15.37 billion), while the banking system has been quick in providing support for 590,000 customers, mainly in forms of debt restructuring or freezing and waiving debt payment with outstanding loans worth over VND1,000 trillion (US$43.31 billion).
Loans with preferential interest rates of 0.5-2.5% lower compared to the pre-Covid-19 period have also been offered to 390,000 customers worth VND2,300 trillion (US$99.6 billion) since January 23.
According to the SBV, the bad debt ratio as of late October exceeded 2%, but “this is inevitable given the severe economic impacts from the Covid-19 and customers’ debt repayment capabilities greatly affected as a result,” noted Mr. Tu.