VN adopts flexible application of interest rates
VNGOP – The State Bank of Việt Nam (SBV) decided to change its interest rates-running mechanism since May 19. Accordingly, SBV will use some regulatory tools, including prime interest rate, refinance interest rate, and discount rate.
May 19, 2008 7:12 AM GMT+7
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The new mechanism will generate a reasonable interest rates |
Under the new mechanism, credit organizations will define their business interest rates (mobilization rates and loan rate) in Vietnamese currency, on the principle that the business interest rates do not exceed 150% of the prime interest rates fixed by SBV for each period.
SBV will monthly make public the prime interest rate and adjust it if necessary.
According to banking experts, with the new mechanism, the prime interest rate will really become an instrument to regulate monetary policies as well as market interest rates, forging reasonable mobilization and loan rates, and harmonizing the benefits among investors, credit organizations, and borrowers.
By Kim Loan
