Vietcombank slashes interest payments by 10% for pandemic-hit borrowers

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has introduced a second interest rate cut to help companies and individuals hurt by the COVID-19 pandemic.

16, Apr. 2020

Photo by Bundo Kim on Unsplash
Photo by Bundo Kim on Unsplash

HANOI, VNA - The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has introduced a second interest rate cut to help companies and individuals hurt by the COVID-19 pandemic.

It will slash interest payments by 10 percent from April 15 to September 30 for directly-hit companies and individuals, while those indirectly-affected will see their payments cut by 5 percent to June 30.

The bank estimates the policy will benefit some 90,000 borrowers that have taken out a combined 300 trillion VND (12.77 billion USD) in loans, or nearly half of its total outstanding loans.

Borrowers who received preferential interest rates are not subject to the new policy.

As at the end of March, the bank had cut its lending rates by 0.5-1.5 percent and maintained existing loan classifications for affected customers in order to cushion the blow from the outbreak.

It has also cut fees on online transactions to encourage customers to adopt cashless payments.

Vietcombank reported 23.15 trillion VND (1 billion USD) in total profit last year, a year-on year increase of 26 percent.

The COVID-19 pandemic is forecast to slash its profit this year by over 2.24 trillion VND. - VNA