In furtherance of Government Resolution No. 01/NQ-CP of January 3, on key solutions to realize the socio-economic development plan and state budget estimates in 2012, and Directive No. 01/CT-TTg of February 13, on implementation of the monetary policy and assurance of safe and effective banking operations, the State Bank of Vietnam issued on April 10 Circular No. 08/2012/TT-NHNN, amending Circular No. 30/2011/TT-NHNN of September 28, 2011, on the ceiling interest rate for Vietnam-dong deposits at credit institutions and foreign bank branches.
From April 11, the highest annual interest rate for demand deposits and deposits of under one month is 4%, while that of deposits of more than one month is 12%.
Particularly, local people’s credit funds are permitted to apply the maximum Vietnam-dong deposit annual interest rate of 12.5%.
On the same day, the State Bank issued Official Letter No. 2056/NHNN-CSTT to require credit institutions and foreign bank branches to take effective measures provided in Directive No. 01/CT-NHNN to meet capital needs of profitable projects and plans according to their maximum credit growth limit set by the State Bank; and to grant credit first of all for agriculture and rural development, export production, supporting industries, and small- and medium-sized enterprises.
Credit institutions and foreign bank branches must control the ratio of outstanding loans for sectors ineligible for development promotion at maximum 16% of the total loans.
For every month, they have to make statistics on outstanding loans for securities and real estate investment and consumer loans to be reported to the State Bank on the 12th day of the following month at the latest.
The SBV also requires credit institutions and foreign bank branches to reschedule the repayment deadline in compliance with Decision No. 783/2005/QD-NHNN of May 31, 2005, for loans not repaid on time due to negative impacts of international and domestic economic conditions.-