| THE STATE BANK OF VIETNAM ------------------ No: 14/2012/TT-NHNN | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness ---------------- Hanoi, May 04, 2012 |
CIRCULAR
STIPULATING THE MAXIMUM VND SHORT-TERM LENDING RATE TO BE CHARGED BY CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES FOR BORROWERS TO MEET THE CAPITAL REQUIREMENTS FOR SEVERAL SECTORS
Pursuant to the Law on the State Bank of Vietnam No.46/2010/QH12 of June 16, 2010;
Pursuant to the Law on credit institutions No. 47/2010/QH12, of June 16, 2010;
Pursuant to the Government’s Decree No. 96/2008/ND-CP, of August 26, 2008, on regulating functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the proposal of the Director of Monetary Policy Department;
The Governor of the State Bank of Vietnam issued the Circular regulating on the maximum interest rate for short term loan in Vietnamese dong of credit institutions, foreign bank branches for borrowers to meet the capital requirements for several sectors.
Article 1. Interest rate for short term loans in Vietnamese dong of Credit institutions, foreign bank’s branches
The maximum short-term lending rate in Vietnamese dong by credit institutions for borrowers is the maximum mobilizing rate in Vietnamese dong for over 1 month term set by SBV plus (+) 3% p.a.
The VND short-term loans applied to charge the maximum lending rate as prescribed in Clause 1 are loans to meet the capital needs of such sectors as:
Serving agriculture and rural areas as stipulated in Decree No. 41/2010/ND-CP of the Government dated April 12, 2010 on credit policies in service of agricultural and rural development.
Implementing plans and projects of production and business of exported goods specified in the Trade Law.
In service of production and business of small and medium enterprises stipulated in Decree No. 56/2009/ND-CP of the Government dated June 30, 2009 on the development assistance for small and medium enterprises;
Developing supporting industries stipulated in Decision No. 12/2011/QD-TTg of the Prime Minister dated February 24, 2011 on the policy of development of several supporting industries.
Article 2. Responsibilities of borrowers
1. Borrowers of credit institutions and foreign bank branches applied the interest rate as stipulated in Article 1 of this Circular are the eligible customers under State Bank of Vietnam provisions on the credit extension of credit institutions for customers and these borrowers are rated as the financially transparent and healthy clients by credit institutions.
2. The borrowers are responsible for providing information and documents to clearly reflect the borrowing purposes in accordance with the sectors governed by this Circular and they are responsible for the accuracy of the provided information and documents.
Article 3. Responsibilities of credit institutions and foreign bank branches
1. Credit institutions and foreign bank branches have to publicly quote the lending rates and criteria to define the eligible borrowers as stipulated in Clause 1, Article 2 under this Circular
2. Credit institutions and foreign bank branches provide loans to customers specified in this Circular in accordance with the legal texts on credit extension, prudential ratios of credit institutions and the other relevant legal texts. Credit institutions are not allowed to collect any additional fees, excluding the fees already prescribed in Circular No. 05/2011/TT-NHNN of the SBV dated March 10, 2011 on the collection of fees of loans by credit institutions for their clients
Article 4. Implementation provisions
1. This Circular shall take effect on May 08, 2012
2. For signed credit contracts prior to the effective date of this Circular,credit institutions and branches of foreign banks and their borrowers shall implement according to contents of the signed credit contract in compliance with provisions of laws which are effective at the time of signing of credit contracts.
3. For those loans not stipulated in this Circular, credit institutions and foreign banks’ branches will comply with the Circular No.12/2010/TT-NHNN of the SBV dated April 14, 2010 providing guidance on lending in vietnamese dong at the agreement interest rate by credit institutions to their customers.
4. The chief of the Administrative Department, Director General of the Monetary Policy Department, Heads of units under the State Bank of Vietnam, Managers of branches of the State Bank of Vietnam in provinces and centrally-run cities, Chairman of the Board of Directors, Chairman of the Members’ Council and General Directors (Directors) of credit institutions, branches of foreign banks, other related organizations and related individuals shall be responsible for the implementation of this Circular./.
| | FOR THE STATE BANK GOVERNOR DEPUTY GOVERNOR Nguyen Dong Tien |
