This decision will also slash the maximum lending interest rates for credit institutions from 15 percent a year to 12.75 percent.

This is the third successive rate cut by the SBV since Nov. 21.

In another decision, which will come into effect on the same day, the SBV reduced the refinancing interest rate from 11 percent to 9.5 percent, and the discount rate from 9 percent to 7.5 percent.

The overnight interest rate for electronic payments on the inter-bank market and for loans that the SBV extends to banks for balance payment deficits will drop from 11 percent to 9.5 percent.

In a further move, the SBV decided to decrease credit institutions’ compulsory reserves of Vietnamese dong by half a point from the current 9 percent.

At the same time, the interest rate for treasury bills issued by the SBV in Vietnamese dong will decrease dramatically, from 13 percent to 4.5 percent.

The SBV said that these decisions are a move by the government to help businesses gain more access to credit sources to fund their production and trade and help them effectively manage their businesses.