According to Official Dispatch No. 32/CD-TTg of the Prime Minister, credit institutions must publicly disclose lending interest rates and the implementation of credit packages before April 10, 2024 in accordance with instructions. of the Standing Government in notice No. 134/TB-VPCP dated April 2, 2024.

On April 5, 2024, Prime Minister Pham Minh Chinh issued Official Dispatch No. 32/CD-TTg on solutions to manage credit growth in 2024, especially in the context of credit growth until March and the first quarter of 2024 only reached about 0.9%. In particular, instructions related to lending interest rates at credit institutions are content that many people are interested in.

The State Bank directs and coordinates to reduce lending interest rates

Specifically, the State Bank of Vietnam is directed to preside over and coordinate with relevant agencies to reduce lending interest rates according to the Direction in Official Dispatch No. 18/CD-TTg dated March 5, 2024 to prioritize promoting economic growth, removing difficulties for production and business associated with macroeconomic stability, controlling inflation, ensuring major balances of the economy, safety of banking operations and system of credit institutions.

In addition, it is necessary to effectively implement appropriate solutions to reduce lending interest rates, associated with increasing access to credit capital to support people and businesses to develop production and business, ensuring adequate supply of credit capital, serving and meeting the capital needs of the economy and safety of the system of credit institutions.

Strictly handle banks that do not disclose interest rates before April 10, 2024

For credit institutions, the Prime Minister requires publicizing lending interest rates and the implementation of credit packages before April 10, 2024 in accordance with the direction of the Standing Government in Notice No.134/TB-VPCP in April 2, 2024. In case of non-compliance, the Governor of the State Bank of Vietnam needs to strictly handle it according to authority and make it public according to the provisions of law.

For state-owned commercial banks, the Prime Minister directed immediate research into building and providing credit packages for social housing buyers with a term of up to 15 years; applying preferential interest rates lower than normal commercial loans and lending to businesses and investors building social housing at more preferential interest rates so that low-income people have opportunities and motivation to buy a house or have advantages in renting/lease-buying a house.

Beside, this group of banks needs to continue to research and consider lowering interest rates, simplifying procedures and facilitating the borrowing of VND 120,000 billions in support capital in accordance with the practical situation in accordance with the direction of the Government. Prime Minister in Notice No. 123/TB-VPCP dated March 27, 2024.

In addition, credit granting by credit institutions also needs to be promoted, strengthen inspection, control, and strict supervision and have effective solutions to promptly handle bad debts of the system credit institutions.

This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.

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