Vietnam cuts rates as it seeks to spur growth

HANOI, Mar 18 (AFP) :  Vietnam's central bank today cut its key interest rates for the first time in nearly a year in an attempt to kick-start the nation's sluggish economy.
The State Bank of Vietnam cut the refinancing rate- charged on loans to commercial banks-to 6.5 per cent from seven per cent.
The discount rate was also trimmed to 4.5 per cent from five per cent.
The cuts, which come into effect on Tuesday, aim to encourage more lending to businesses to stimulate growth, according to a report posted on the bank's website.
The communist nation is struggling to revitalise an economy hit by slow domestic demand, banking sector troubles, falling foreign direct investment and financial malaise among state-owned companies.