Circular No. 04/2009/TT-NHNN dated March 13, 2009 of the State Bank of Vietnam amending and supplementing Circular No. 02/2009/TT-NHNN of February 3, 2009, stipulating in detail the provision of interest rate support to organizations and individuals borrowing bank loans for their production and business

THE STATE BANK OF VIETNAM

Circular No. 04/2009/TT-NHNN of March 13, 2009, amending and supplementing Circular No. 02/2009/TT-NHNN of February 3, 2009, stipulating in detail the provision of interest rate support to organizations and individuals borrowing bank loans for their production and business

Pursuant to the Government’s Resolution No. 30/2008/NQ-CP of December 11, 2008, on urgent measures to curb economic decline, maintain economic growth and ensure social welfare;

Pursuant to the Prime Minister’s Decision No. 131/QD-TTg of January 23, 2009, on the provision of interest rate support to organizations and individuals borrowing bank loans for their production and business;

Pursuant to the Prime Minister’s Decision No. 333/QD-TTg of March 10, 2009, amending and supplementing a number of articles of the Prime Minister’s Decision No. 131/QD-TTg of January 23, 2009, on the provision of interest rate support to organizations and individuals borrowing bank loans for their production and business;

The State Bank of Vietnam amends and supplements Circular No. 02/2009/TT-NHNN of February 3, 2009, stipulating in detail the provision of interest rate support to organizations and individuals borrowing bank loans for their production and business as follows:

1. To amend and supplement Article 1 as follows:

a/ Clause 1 is amended and supplemented as follows:

“1. Credit institutions that provide loans to organizations and individuals under law and provide interest rate support, including:

- State-run commercial banks;

- Joint-stock commercial banks;

- Joint-venture banks;

- Foreign banks’ Vietnam-based subsidiaries;

- Wholly foreign-owned banks;

- The Central People’s Credit Fund;

- Financieal companies (except financical companies specializing in consumer credit and cards as prescribed by law) which strictly abide by the State Bank of Vietnam’s regulations on safety ratios in operations of credit institutions, deduct and use provisions to handle credit risks in banking operations and have the proportion of bad debts to the total outstanding loans below 5%. The list of financial companies providing interest rate support is specified in Appendix 01 to this Circular.

Credit institutions prescribed in this Clause are below referred collectively to as commercial banks.”

b/ Clause 3 is added with Points c and d as follows:

“c/ Loans classified according to sub-sectors of the mining industry prescribed in Appendix 7 to the State Bank Governor’s Decision No. 477/2004/QD-NHNN of April 28, 2004, and Decision No. 143TCTK/PPCD of December 22, 1993, of the General Director of the General Statistics Office of Vietnam promulgating the system of economic sectors of grades II, III and IV.

d/ Loans provided to economic organizations set up and operating under Vietnam’s law for the purchase of supplies and goods and payment of remuneration and other domestically arisen expenses to implement overseas production and business plans.”

c/ Point b, Clause 4 is amended and supplemented as follows:

“b/ Vietnam dong short-term loans classified according to economic sub-sectors prescribed in Appendix 7 to Decision No. 477/2004/QD-NHNN and Decision No. 143TCTK/PPCD:

- Financial, banking and insurance operations, covering also loans for offshore direct and indirect investment (except loans to economic organizations specified at Point b, Clause 1, Article 1 of this Circular), payment of foreign debts or debts to other credit institutions and payment of debts to lending commercial banks;

- Property dealing activities and consultancy services;

- State management, national security and defense; activities of Party and mass organizations, compulsory social assurance;

- Education and training;

- Health care and social relief;

- Cultural and sport activities, including recreation and entertainment business;

- Personal and public-service activities (covering also consumer loans and loans provided through issuance and use of credit cards);

- Household-based services;

- Operations of international organizations and societies.”

2. To replace Forms No. 03 and 04 in the Appendix to Circular No. 02/2009/TT-NHNN with Appendices 2 and 3 to this Circular (not printed herein).

Article 2. Application of retrospective effect

If interest rate support has not yet been provided for loans granted from February 1, 2009, and eligible for interest rate support under this Circular, commercial banks shall provide interest rate support under law from the date of loan provision.

Article 3. Organization of implementation

1. This Circular takes effect on the date of its signing.

2. The directors of the Office and the Monetary Policy Department and heads of units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam; chairmen of boards of directors and directors general (directors) of commercial banks, and borrowers shall implement this Circular.

Governor of the State Bank of Vietnam
NGUYEN VAN GIAU

Appendix 01

Financial companies providing interest rate support under the Prime Minister’s Decision No. 333/QD-TTg of March 10, 2009

1. Rubber Finance Company

2. Vietnam National Coal and Mineral Finance Company

3. PetroVietnam Finance Corporation

4. Vinashin Finance Leasing Company

5. Handico Finance Company.-