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Official Gazette

Saturday, July 4, 2020

Circular No. 07/2011/TT-NHNN: New rules on foreign-currency lending for residents enacted

Updated: 09:10’ - 09/04/2011

In furtherance of the Government’s Resolution No. 11/NQ-CP on major solutions to curb inflation, stabilize macro-economy and assure social security, the State Bank of Vietnam issued on March 25 Circular No. 07/2011/TT-NHNN, on provision of foreign-currency loans by credit institutions to resident borrowers.

From May 9, credit institutions may consider providing foreign-currency loans of various terms to individuals or organizations that are based in Vietnam for paying their foreign partners for import of goods or services. Eligible borrowers must have foreign-currency revenue sources from their production or business operations or purchased from other credit institutions under written agreements.

Credit institutions will provide short-term foreign-currency loans for individuals and organizations to carry out their plans on production or trading of goods to be exported via Vietnam’s border gates or borders, provided that borrowers have enough foreign-currency amounts earned from export activities to repay loans. If borrowers use these foreign-currency loans domestically, in repaying these loans they should sell repaid amounts to lending credit institutions in the form of spot foreign-exchange transaction);     

Other foreign-currency loan needs must be in writing approved by the Governor of the State Bank of Vietnam.

 Credit institutions will provide foreign-currency loans under this Circular, regulations on foreign exchange lending and management, prudential ratios in business operations of credit institutions and other relevant laws. They are also obliged to report on these loans to the State Bank of Vietnam, clearly showing the loan debit balance with regard to resident borrowers, the balance of loans for and investment in other credit institutions operating in Vietnam, the debit balance converted into Vietnam dong and growth rate of loan debit balance compared with the preceding month.

The deadline for submitting a monthly report is the 10th of the next month at the latest.

Regarding credit contracts signed before May 9, credit institutions and their borrowers should fulfill contract terms in accordance with regulations effective at the time of signing. This Circular supersedes Decision No. 09/2008/QD-NHNN of April 10, 2008 and Circular No. 25/2009/TT-NHNN of December 15, 2009.-


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