Even
after commercial banks capped the deposit interest rate at 14 percent and cut
lending interest rates, companies continue to complain of their inability to
borrow capital at 21-24 percent per year.
Major commercial banks have lowered the dong
lending rates on loans to businesses at 17-19 percent. However, Bui Van Chinh,
director of the Hoan Cau Garment Company, says he is being denied access to
lower rates. A bank offered him lending interest rate at 21.5 percent per year.
Chinh said that it is difficult to access the
lending rate at 17-19 percent. Some businesses have had to accept lending rate
at 20-24 percent, despite offering mortgage assets.
Similarly, companies operating in sectors like
mechanics, plastic and electronics also complained about the lending interest
rate that banks were offering at 22-23 percent, sometimes even higher.
Tran Van Binh, director of Hoang Tan Private
Company said that his firm had asked to borrow from some commercial banks but
none agreed to lend at 19 percent. Now, he has to borrow at 22 percent.
Le Ba Lich, chairman of the Vietnam
Association of Animal Feed Manufacturers, said only a few big firms could
access the lower interest rates. Many small firms still borrowed at interest
rates of over 19 percent.
A representative of Dai A Commercial Bank said
that the bank just applied the lending rate of 17-19 percent for some special
companies. The bank carefully assessed firms’ profiles before deciding to lend
them, to ensure that we offer the loans to the right people, the representative
said.
In the short term, the rates will be
applicable only to particular beneficiaries or loyal customers of the bank, the
representative said.
Another manager of a commercial bank who
wished to remain anonymous said the reduced lending interest rates could cause
problems for banks.
It is difficult for banks to lower lending
rates suddenly and apply the new rates for all customers, he said.
The interest rates of 17-19 percent can only
be applied to more and more customers in the next one or two months when banks
have dealt with all high-interest deposits, he said. If banks disrupt the cap
on deposit rates, lending rates will be cut as low as 17 percent in coming
times.
By Lac Phong
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment