MAXIMUM INTEREST RATES APPLICABLE TO SHORT-TERM LENDING IN VIETNAM DONG CONTINUES TO DECREASE

Pursuant to Decision No. 1730/QĐ-NHNN issued by the State Bank on September 30, 2020 and come into effect from October 1, 2020:

– Credit institutions and branches of foreign banks (except the People’s Credit Funds and microfinance institutions) shall adopt the maximum interest rates for short-term lending in Vietnam Dong of 4.5% per year (decrease by 0.5% per year compared to previous one).

– The people’s credit funds and microfinance institutions shall adopt the maximum interest rates for short-term lending in Vietnam Dong of 5.5% per year (decrease by 0.5% per year compared to previous one).
Thus, the short-term lending interest rate continues to decrease by 0.5% per year compared to the previous rate specified in Decision 920/QD-NHNN dated May 12, 2020.

– Interest rates applicable to credit contracts and lending agreements signed before the effective date hereof shall comply with the signed credit contracts and lending agreement in accordance with applicable law provisions at the time of signing.

Best regards,