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BIDV reduces lending rates to support businesses amidst Covid-19
THU HUYEN
BIDV announces lending rate reduction for businesses in 19 southern provinces and cities that are under social distancing. The total reduction is up to VND1,000 billion (USD43.5 million).
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From now until the end of 31 December 2021, BIDV is reducing lending interest rates on existing outstanding loans as well as launching a new low-rate credit package for business customers affected by the Covid-19 pandemic in 19 southern provinces and cities that are under social distancing according to the Government’s Directive 16. The particulars are as follows:
Lending interest rate reduced by 0.5 - 1.5 percent/year on existing outstanding loans denominated in VND arising by 15 July 2021 for enterprises facing difficulties due to the Covid-19 pandemic. The maximum rate reduction is applicable to heavily affected sectors such as traffic, transportation, healthcare, education, accommodation service, restaurant service, hotels, resorts... BIDV's interest reduction is for existing outstanding loans of all terms, worth up to VND800 billion (USD34.8 million). Customers who have enjoyed other preferential lending interest rate policies will continue to be eligible for this program.
In addition to the lending rate cut, BIDV offers a new credit package of VND30,000 billion (USD1.3 billion), applicable to short-term loans with a maximum loan term of 12 months. The interest rate is reduced by up to 1.5 percent/year compared to the normal interest rate. According to BIDV, the interest reduction amount of this credit package is about VND200 billion (USD8.7 million).
In the first 7 months of 2021, BIDV has reduced lending interest rates to support business customers in 19 southern provinces and cities by over VND500 billion (USD21.7 million). With these interest rate support policies, the total reduction BIDV expects to support this customer group in 2021 is up to VND1,500 billion (USD65.2 million). Overall, the total resources BIDV expects to support customers affected by the Covid-19 pandemic in 2021 are up to VND6,100 billion (USD265.2 million).
These are practical actions BIDV takes to support businesses affected by the Covid-19 pandemic in 19 southern provinces and cities to ease difficulties and ensure business operations through the remainder of the year.
