Circular No. 07/2011/TT-NHNN dated March 24, 2011 of the State Bank of Vietnm on provision of foreign-currency loans by credit institutions to resident borrowers

ALLOW TO BORROW FOREIGN CURRENCY FOR IMPORT GOODS AND SERVICES PAYMENT

On March 24, 2011, the State Bank of Vietnam issued the Circular No. 07/2011/TT-NHNN providing on foreign currency loans of the credit institutions with customers being residents.

Accordingly, the credit institutions licensed to operate in foreign exchange shall consider deciding of foreign currency loans with customers being residents for the following funds demands: the short-term, mid-term and long-term foreign currency loans in order to overseas paying for imported goods and services in foreign exchange on condition that customers have sufficient in order to paying of debt rely on the income source from production and business, buying of the loan credit institution or other credit institution undertaken in writing; the short-term foreign currency loans in order to implement production and business plan of goods exporting through the border gate, frontier of Vietnam on condition that customers have adequate foreign exchange in order to paying of the debt rely on the income source of exporting; the loans for other foreign exchange capital demands have to take the approving in writing of the State Bank’s governor.

The credit institutions loan in foreign currency according to provisions in this Circular, law provisions on loans, foreign exchange management, safety ensuring rate in credit institutions’ business activities and other relative regulations of laws.

The limit time for sending the reports: Monthly, latest on the 10th of the next month of the report month.