Hanoi (VNS/VNA) - The State Bank of Vietnam (SBV) has extended the creditgrowth limits for the second time this year to some commercial banks, of whichthe highest level is up to 30 percent.

Leadingbanks including four State-owned commercial banks, also introduced a loanpackage for production and business, supporting small and medium enterpriseswith preferential interest rates to boost credit growth at the end of the year.

Thelending interest rate ranges from 4.8-6.5 percent per year for loans less thansix months and 5.5-7.5 percent per year for loans from six to 12 months.

However,home and car loan interest rates of most commercial banks decreased only 10-20basis points compared to the end of the third quarter, at 7-9.5 percent peryear for the fixed interest rate period, then will be adjusted according to thedeposit interest rate or the bank's internal capital transfer interest rate ataround 10.5-11.5 percent per year.

Theinterbank interest rate was flat at 0.19 percent per year for the overnightdeposit tenor and 0.24 percent per year for the one-week deposit tenor.

Depositinterest rate is also stable at 2.5-3.8 percent per year for tenors of lessthan six months, 3.7-5 percent per year for six to less than 12 months, 4.9-5.8percent per year for 12-13 months.

Creditgrowth was more positive in the last quarter of the year, but commercial banks'liquidity is still abundant, interbank interest rates and deposit interestrates will move sideways in the next few months.

Marketfluctuations revolved around conflicting information about the new US economicstimulus package last week. Overall, the optimistic sentiment remained dueto the positive developments in the COVID-19 vaccine.

TheUSD/VND exchange rate listed by commercial banks remained at 23,010/23,220 VND.

Theexchange rate on the free market increased by 30 VND per US dollarbuying in and 40 VND per US dollar selling out to 23,200/23,240 VND.

Theinternational movement and the domestic foreign currency supply and demand arequite favourable, so the USD/VND exchange rate will keep a sideways trend.

Inaddition, the public hearing of the US trade representative on Vietnamesecurrency valuation on December 29 may create a slight upward pressure on theVietnamese dong./.