Circular No. 08/2011/TT-NHNN dated April 08, 2011 of the State Bank of Vietnam detailing on credit of rice import business according to Decree No.109/2010/ND-CP dated 4/11/2010 of the Government

CIRCULAR

DETAILING ON CREDIT OF RICE IMPORT BUSINESS ACCORDING TO DECREE NO.109/2010/ND-CP DATED 4/11/2010 OF THE GOVERNMENT

THE STATE BANK OF VIETNAM

Pursuant to the Law on State Bank of Vietnam No. 46/2010/QH12 June 16, 2010;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 June 16, 2010;
Pursuant to the Decree No.96/2008/ND-CP August 26, 2008 of the Government regulating functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Decree No.109/2010/ND-CP dated 4/11/2010 of the Government on rice export business;
After agreeing with the Ministry of Finance, the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, the State Bank of Vietnam details the implementation of credit of rice export business according to the Decree No.109/2010/ND-CP dated 4/11/2010 of the Government on rice export business (hereinafter called as Decree 109/2010/ND-the Government for short) as follows:

Article 1. Scope of application

This Circular stipulates the loan of commercial banks to traders to carry on business of paddy, rice export business of all kinds(hereinafter collectively called as paddy, merchandise rice).

Article 2. Subjects of application

1. Lending banks: include the commercial banks are established and operating according to provisions ofthe Law on Credit Institutionsto implement the loan for paddy, merchandise rice export business under the provisions of this Circular and the provisions of relevant law.

2. The clients loan at commercial banks, including traders carrying on paddy, merchandise rice export operating under the provisions of the Trade Law and the provisions in Article 3 of Decree 109/2010/ND-CP.

Article 3. The loan for rice export business

1. The commercial banks actively balance to ensure capital sources to lend for the traders doing business paddy, merchandise rice export according to the expected plan to be balanced in accordance with Decree 109/2010/ND – CP.

2. The loan of the banks to traders doing business paddy, merchandise rice export is implemented according to current provisions on loan of credit institutions to clients.

3. Traders loan capital for paddy, merchandise rice export business, besides the satisfying of the conditions of capital loan under current regulations, must also be granted the certificate of sufficient condition for rice export business by the Ministry of Industry and Commerce according to provision in Article 6 of Decree 109/2010/ND-CP.

4. In case traders have not got the certificate of sufficient condition for rice export business since the effective date of Decree 109/2010/ND-CP shall still be loaned by banks to do business rice export according to provision on Article of transferring in Article 28 Decree 109/2010/ND-CP.

Article 4. The loan to regulate exporting rice, merchandise rice price for execution of rice export according to the steering of the Prime Minister

In case of paddy and merchandise rice prices on the market below the paddy and merchandise rice prices oriented, commercial banks loan to traders to purchase paddy, rice under the steering of the Prime Minister and guidelines of the State Bank of Vietnam in each period.

Article 5. Responsibility of commercial banks and the units under the State Bank

1. Responsibility of commercial banks

- Actively balancing capital sources to ensure to meet timely the demand of loans for traders having sufficient conditions to do business of paddy and rice.

- Complying with legal regulations and guidelines of the State Bank of Vietnam on lending to traders to make the paddy and merchandise rice export business to ensure the domestic consumption markets stabilization and for export;

- Monthly, the latest is on 10th of the following month of the reporting month; commercial banks make report on loans to purchase paddy, merchandise for export and domestic consumption according to Appendix 1 enclosed with this Circular.

2. Responsibility of the units under the State Bank

a) Department of Credit

- Contact point for implementing and coordinating with units under the State Bank of Vietnam in consideration and handling of arising matters relating to the performance of loans to purchase paddy, merchandise rice of commercial banks;

- Contact point for synthesizing results of loans to purchase paddy, merchandise rice and reporting to the Government when being requested.

b) Department of Monetary Policy

Coordinating with the Department of Credit and the units under the State Bank in to handle petitions, obstacles of commercial banks, localities, organizations and individuals in the loan for rice export business.

c) Bank supervision inspection agency 

Inspecting, supervising the loan for rice export business of the commercial banks according to current provisions.

d) Branches of the State Bank in provinces and cities

- The State Bank - branches in provinces and cities closely monitor the situation of loan to purchase paddy, rice in the area. Where there are difficulties and problems beyond its competence, the banks report to the State Bank of Vietnam (the Department of Credit) for consideration, handling;

- Monthly (no later than 10^thof the month following the reporting month) synthesis report on situation of loans to purchase paddy, merchandise rice for export and domestic consumption in the area under Appendix 2 attached to this Circular.

Article 6. Implementation organization 

1. This Circular takes effect on May 22, 2011.

2. The documents are invalid: Official Dispatch No.2311/NHNN-TD dated 12/3/2008 on balancing capital sources for loan to purchase paddy, rice in 2008 and Official Dispatch No.1671/NHNN-TD dated 4/3/2010 on ensuring capital sources for rice export in 2010.

3. Head of Office, Director General of Department of Credit and Heads of the units under the State Bank, Directors of the State Bank- branches in provinces and cities directly under the central; management board and General Director (Director) of commercial banks are responsibility for the implementation of this Circular.