Hanoi

VIETNAM'S surprise lowering of interest rates for the first time in three years may help to support economic growth, but raises credit risks in a nation still grappling with a hangover of bad debt.

The central bank reduced the refinance rate by 25 basis points to 6.25 per cent late on Friday and also lowered the discount rate to 4.25 per cent from 4.5 per cent. The changes come into effect on Monday, the State Bank of Vietnam said on its website.