STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 993/2001/QD-NHNN
Hanoi, August 6, 2001
 
DECISION
ON THE LEVEL OF LENDING WITHOUT ASSET SECURITY FOR STATE-OWNED COMMERCIAL BANKS, BRANCHES OF FOREIGN BANKS IN VIETNAM, FINANCE COMPANIES OF STATE-OWNED GENERAL CORPORATIONS AND THE BANK FOR THE POOR.
THE GOVERNOR OF THE STATE BANK
Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated 3 February, 1993 of the Government on the assignment, authority and responsibility for State management of the ministries and ministry-level agencies;
Pursuant to paragraph 2 Article 21 of the Decree No. 178/1999/ND-CP of the Government dated 29 December, 1999 on the loan security for credit institutions;

Upon the proposal of the Director of the Monetary Policy Department,
DECIDES
Article 1.
1. The Board of Directors of the Bank for Agriculture and Rural Development of Vietnam, the Industrial and Commercial Bank of Vietnam, the Bank for Foreign Trade of Vietnam, the Investment and Development Bank of Vietnam, the Bank for the Housing Development in Mekong Delta (hereinafter referred to as state-owned commercial Bank); General Directors (Directors) of Finance Companies of state-owned General Corporations; General Managers of Foreign Bank branches in Vietnam shall decide on the level of the outstanding loans without asset security to borrowing customers and be responsible for their decisions.
2. The Bank for the Poor shall lend to poor individuals, family households without assets security in accordance with applicable provisions of the Decision No. 525/TTg dated 31 August, 1995 of the Prime Minister on the establishment of the Bank for the Poor or lend with the guarantee by pledge of trust of socio-political organizations at the local level in accordance with applicable provisions of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security for credit institutions and the Circular No. 06/2000/TT-NHNN1 dated 4 April, 2000 of the Governor of the State Bank guiding the implementation of this Decree.
Article 2.
1. The level of outstanding loans without asset security for a credit institution as provided for in paragraph 1 Article 1 of this Decision shall be calculated on the basis of the total outstanding loans of that credit institution which do not include:
a. The outstanding loans without asset security extended under instruction of the Government;
b. The outstanding loans without asset security extended in accordance with the Decision No. 67/1999/QD-TTg dated 30 March, 1999 of the Prime Minister on some credit policies for the agricultural and rural development; loans of up to VND 20 millions without asset security extended to farmer's households, owners of farms in the areas of agriculture, forestry, aquatic production of the nature of goods productions in accordance with point 4 Section 1 of the Circular No. 10/2000/TT-NHNN1 dated 31 August, 2000 of the Governor of the State Bank guiding the implementation of measures of security for loan of credit institutions in accordance with Resolution No. 11/2000/NQ-CP dated 31 July, 2000 of the Government on several measures to conduct the plan of socio-economic development in the last 6 months of 2000;
c. The outstanding balance of loans of under VND 50 millions that are extended to organizations, households and individuals of aquatic production without asset security in accordance with point 2 Article 4 of the Decision No. 103/2000/QD-TTg dated 25 August, 2000 of the Government on several measures to encourage aquatic variety development;
2. The level of outstanding loans without asset security for a credit institution provided for in paragraph 1 of this Article shall only be applicable to credit contracts entered into as from 19 April, 2000.
Article 3.
State-owned commercial banks, branches of foreign banks in Vietnam, Finance Companies of State-owned General Corporations shall decide and perform the lending without asset security to borrowing customers on the basis of ensuring the safety of credit activities, compliance with provisions on the lending without assets security stated in the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security for credit institutions, and the Circular No. 06/2000/TT-NHNN1 dated 4 April, 2000 of the Governor of the State Bank guiding the implementation of this Decree and related legal documents.
Article 4. Implementing provisions
1. This Decision shall be effective from the date of signing and supercede the Decision No. 107/2000/QD-NHNN1 dated 4 April, 2000 of the Governor of the State Bank.
2. The Chief Inspector of the State Bank shall be responsible for the control, supervision of the implementation of this Decision.
3. The Heads of the State Bank units, General Managers of the State Bank branches in provinces, cities under the central management, Chairpersons, General Directors (Directors) of State-owned commercial banks, branches of foreign banks in Vietnam, Finance Companies in State-owned General Corporations and the Bank for the Poor shall be responsible for the implementation of this Decision.
4. Any amendment, supplement of this Decision shall be decided upon by the Governor of the State Bank.
 

 

 
FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Duong Thu Huong