Hanoi (VNA) – Domestic banks forecast that the lending interest rates would drop in line with the government’s policy to support production and business activities of enterprises.

Illustrative photo (Photo: VNA)

Massive interest rate reductionshort-term VND loans for agriculture, rural development, export, supporting industry, small- and medium-sized enterprises (SMEs) and businesses applying high technologies will be reduced from 6.5 percent per annum to 6 percent per annum.

Lower interest rates will support businesses’ production activities. (Photo: VNA)

Abundant liquidity domestic banks is rather high so the inter-bank interest rate has fallen over the past weeks, meaning the demand for mutual borrowing among banks has decreased.