THE STATE BANK OF VIETNAM
Circular No. 29/2014/TT-NHNN dated October 09, 2014 of the Vietnam State Bank guiding commercial banks to coordinate with Vietnam Development Bank in the implementation of guarantee mechanism for small- and medium-sized enterprises borrowing capital as stipulated under the guarantee regulation promulgated together with the Decision No. 03/2011/QD-TTg dated January 10, 2011 of the Prime Minister
Pursuant to the Law on Vietnam State Bank No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to the Decree No. 156/2013/ND-CP dated November 11, 2013 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Decree No.56/2009/ND-CP dated June 30, 2009 of the Government on assistance to the development of small- and medium-sized enterprises;
Pursuant to the Decision No. 03/2011/QD-TTg dated January 10, 2011 of the Prime Minister promulgating regulations of guarantee for small and medium-sized enterprises to borrow capital at commercial banks;
At the proposal of the Director of the Department of Credit for all economic sectors;
The State Bank Governor promulgates the Circular No. 29/2014/TT-NHNN dated October 09, 2014 of the Vietnam State Bank guiding commercial banks to coordinate with Vietnam Development Bank in the implementation of guarantee mechanism for small- and medium-sized enterprises borrowing capital as stipulated under the guarantee regulation promulgated together with the Decision No. 03/2011/QD-TTg dated January 10, 2011 of the Prime Minister
Chapter I
GENERAL PROVISIONS
Article 1. Scope of application
This Circular guides commercial banks to coordinate with Vietnam Development Bank in the implementation of guarantee mechanism for small- and medium-sized enterprises borrowing capital as stipulated under the guarantee regulation promulgated together with the Decision No. 03/2011/QD-TTg dated January 10, 2011 of the Prime Minister
Article 2. Subjects of application
1. The State Commercial Banks, Joint Stock Commercial Banks, Joint Venture Banks, Banks with 100% foreign capital, branches of foreign banks in Vietnam (hereinafter referred to as the lender).
2. Enterprises guaranteed to borrow capital by Development Bank being small and medium-sized enterprises (excluding the super-small enterprises) as stipulated under the Decree No.56/2009/ND-CP dated June 30, 2009 of the Government on assistance to the development of small- and medium-sized enterprises (hereinafter referred to as the customer).
3. Development bank and related organizations, individuals in the course of implementing regulations of guarantee;
Article 3. Principles of lending
1. The production business projects considered for loans guaranteed by Development Bank are the projects belonging to the sectors, fields as stipulated under Clause 2 Article 3 of guarantee regulations.
2. The lender shall consider, decide on the loans guaranteed by Development Bank as specified by current regulations on the lending of credit institutions for customers, regulations of this Circular and other related regulations.
