Vietnam PM wants banks to cut rates

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Vietnamese banks should lower their interest rates on dong deposits to around 10 percent and cut lending rates to 12-13 percent, Prime Minister Nguyen Tan Dung was quoted in a state news report as saying.

Dung urged the State Bank of Vietnam, or the central bank, to monitor and guide the situation in a timely manner "to gradually lower interest rates," the official Vietnam News Agency reported late on Tuesday. It gave no timeframe for the new rates.

Banks offered to pay 11-11.5 percent on dong deposits and lent at 14-17 percent during the week ending April 15, with rates on medium- and long-term loans falling 1 percentage point from the previous week, the central bank said in its weekly report.

The central bank should ensure that annual credit growth this year was 25 percent and the money supply growth rate was 20 percent, Dung was quoted in a separate government statement as saying during a meeting with the central bank on Tuesday.

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