Circular No. 03/2012/TT-NHNN dated March 08, 2012 of the State Bank of Vietnam providing on foreign currency loans of the credit institutions and branches of foreign banks with customers being residents

THE STATE BANK OF VIETNAM

Circular No. 03/2012/TT-NHNN of March 8, 2012, on provision of foreign-currency loans by credit institutions and foreign bank branches to resident borrowers

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange;

Pursuant to the Government’s Decree No. 160/2006/ND-CP of December 28, 2006, detailing the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 96/ 2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the director of the Monetary Policy Department,

The Governor of the State Bank of Vietnam issues a circular on provision of foreign-currency loans by credit institutions and foreign bank branches to resident borrowers.

Article 1. Credit institutions and foreign bank branches licensed for foreign exchange activities may consider providing resident borrowers with short-, medium- and long-term foreign-currency loans to make overseas payment for import of goods or services, if these borrowers have sufficient foreign-currency revenues from their production or business operations for debt repayment.

Article 2. Credit institutions and foreign bank branches licensed for foreign exchange activities may consider providing resident borrowers with foreign-currency loans to meet needs other than those specified in Article 1 of this Circular in the following cases:

1. Short-term loans for borrowers to make overseas payment for import of petrol and oil when obtaining written permission from the State Bank of Vietnam.

2. Foreign-currency loans for needs which have been approved in writing by the State Bank of Vietnam on a case-by-case basis at the request of credit institutions and foreign bank branches on the following basis:

a/ Customers borrow foreign-currency loans to carry out goods production and trading plans and projects in the prioritized fields under the Government’s policy.

b/ Credit institutions and foreign bank branches have appraised and assured that the production and trading plans and projects of customers are feasible and effective, and the customers fully meet conditions on capital borrowing under regulations on lending activities and have capacity to repay their debts (principal and interest) on due date.

Article 3.

1. Credit institutions and foreign bank branches shall 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.

2. Credit institutions and foreign bank branches shall monthly report on foreign-currency loans to the State Bank of Vietnam in accordance with the Appendix to this Circular (not printed herein).

Article 4.

1. This Circular takes effect on May 2, 2012, and supersedes the Governor of the State Bank of Vietnam’s Circular No. 07/2011/TT-NHNN of March 24, 2011, on provision of foreign-currency loans by credit institutions to resident borrowers.

2. For credit contracts signed before the effective date of this Circular, credit institutions, foreign bank branches and borrowers shall fulfill contract terms in accordance with regulations effective at the time of contract signing or may agree to amend and supplement their credit contracts to conform to this Circular.

3. The chief of the Office, the director of the Monetary Policy Department, heads of units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam; chairpersons of boards of directors or members’ councils and directors general (directors) of credit institutions and foreign bank branches, other institutions and related individuals shall implement this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
NGUYEN DONG TIEN