A series of commercial banks have announced an increase in depositinterest rates in VND to 12 percent per annum from 11 percent in theprevious year in an effort to stabilise exchange rate and curb inflationas of Nov. 8.

The move followed an agreement betweenthe State Bank of Vietnam and representatives of five state-run and11 joint-stock commercial banks at their meeting on Nov. 5 to discussmonetary and forex measures in the remaining months of the year.

Saving interest rates of the Bank for Investment and Development ofVietnam (BIDV) will hover 12 percent per year, applicable to savingsfrom one-month term upward.

Such commercial banks asHabubank, Tien Phong Bank, VPBank and Oceanbank have also announcedtheir interest rates at the same level.

To effectivelyimplement monetary and forex measures, the State Bank of Vietnam hasdirected credit institutions to spend all sources of capital foragriculture production, exports, rural area, small- and medium-sizedenterprises, power development projects and loan demands for goods andservice supply for the two remaining months of the year and early nextyear.

At the same time, these institutions shouldreconsider debt payment duration, loan interest exemption or reductionfor flood-hit provinces or provide them with new loans.

Commercial banks are required to ensure liquidity and strictly follow regulations on safe ratios in banking activities.

Meanwhile, credit institutions need to take measures to reduce demandand increase supply for foreign currencies, limit loan provision inforeign currencies and the purchase of foreign currencies for the importgoods listed as nonessential imports.

They are also asked to strictly implement the central bank’s regulations on foreign currency listing and trading./.