The minimum lending rate will be lowered down to 12% since December 24, according to the State Bank of Viet Nam's latest decision.

The refinancing and discount rates will drop to 9% and 7% per year, respectively, down 1% from the current levels.

The move is part of the central bank’s effort to ease difficulties against business circle amid economic downturn.

In its monthly resolution issued on December 7, the Government tasked the central bank to urgently make plan for lowering lending rates and maintaining proper credit growth, and design another plan for dealing with bad debts.

The two plans must be submitted to the Prime Minister prior to December 10, 2012, the Government had requested.

The State Bank was also asked to accelerate the restructuring process of commercial banks, ensuring the safety of the whole banking system and prioritizing credit for agriculture, especially aquaculture and export.