Banks’ interest set a new peak

New report published by the State Bank shows that in March 5th to 11th , interest rates and the mobilization of U.S. currency held steady below the ceiling prescribed. In particular, interest rates to mobilize the common currency from 10 to 10.49% a year for most of the periodBanks at the same time apply the mobilization interest rate of dollars for businesses at 1%, with individual customers is 3 to 4.5% a year, depending on term.
Short-term lending rate to meet the needs of production and business is also listed in the ceiling as prescribed, 12% a year. However, according to the State Bank, interest rate for medium and long-term to agreed mechanism is about the 14-15% in commercial state banks and 15-17% for the group shares, some small-scale banks offer loans with high interest rates around 18-20% a year.
In the price index today, the interest rate for loans at 17-18% is considered to exceed the ability to accept of many businessExperts to calculate, businesses have profit rate of about 25% of new capital to offset the so high costs.
Mr. Nguyen Van Huong – Director of Minh Tam Co. (specializing in producing and processing agricultural products) said, this time prices have signs of increasing over the same period last year, while currently agricultural business is not in the main season so the amount of production is not enough, raw material inputs are also increased 7-8%. Minh Tam still lending rates which are reasonable.
"If 17% of the loan with interest rates as many businesses say they do not borrow and find other sources. Even to reduce the scale of development, reduce the amount of loans to narrow production and improve concentration products, increase competitiveness "- Mr Huong told the press.
Since the financial crisis is too high, many businesses have self mobilization by raising capital by officials and employees in the enterprise. A business in Khanh Hoa is in a need for capital to accelerate production. This year, the company have signed many export contracts, but the loan,
"We signed a contract last year so we could not increase the prices. With high interest rate at present, we know we were wrong, but we have to mobilize capital from officials and  employees in order not only not to increse price, but also to have capital to stablize production, business owners said.
As explained by enterprises, the self-mobilization of capital from within is "benefit for both sides. Staff gain additional interest, business loans at low interest rates compared to bank loans, do not have to mortgage. At present, many enterprises to mobilize internal capital with interest rates 12-13% a year, higher interest rates of banks to mobilize.
Banks are actually very difficult to mobilize long-term capital while still being central control by the ceiling interest rate shall not exceed 10.5% mobilization. Mechanism agreement will only apply to medium and long term loans, not apply to short-term loan production business. Banks are controlled not exceed 30% short-term capital for long-term loans. So the bank market can not be smoothly.
Some shares bank have suggested the State Bank to lift mobilizaion interest rate ceiling and expand the mechanism to deal with short-term loans. However, the State Bank is still considered carefully before the final decision.
According to the State Bank, the total turnover of transactions on the interbank market - where banks borrow from each other which approximately 84,645 billion and U.S. $ 1.5 billion, average of about 16,929 billion VND and 305 million dollars per day. Compared to last week, sales transactions on the interbank market term decline both in USD and USD. In which sales transactions decreased by VND 944 billion, sales transactions in USD 37 million reduction.
The average interest rate transactions in VND inter-bank market has continued to trend down from last week for most of the period, the rate decreased from 0.25% to 1.41% per year.