Circular No. 09/2013/TT-NHNN dated March 25, 2013 of the State Bank of Vietnam stipulating the maximum Vietnam dong short-term lending interest rates to be applied by credit institutions and foreign bank branches for borrowers to meet capital demands of a number of economic sectors and fields

REDUCE SHORT-TERM LOAN’S MAXIMUM INTEREST RATES TO 11%

On March 25, 2013, the State Bank of Vietnam issued the Circular No. 09/2013/TT-NHNN dated March 25, 2013 promulgating the short-term loan’s maximum interest rates in Vietnam dong for credit institutions and foreign bank’s branches to borrowers so as to satisfy the capital demand for serving some economic sectors and industries.

Accordingly, from March 26, 2013, the State Bank of Vietnam only allows Short-term loan’s maximum interest rate in Vietnam dong (VND) issued by credit institutions and foreign bank’s branches is 11% per annum; People’s Credit Fund and Microfinance Organization shall impose the short term loan’s maximum interest rate in VND of 12% per annum (decreased by 1% compared with previous regulations).

The short-term loans in VND shall apply the maximum loaning interest rates as these loans can satisfy capital demands for serving the agricultural and rural development in accordance with the Decree No. 41/2010/ND-CP Decree No. 41/2010/ND-CP dated April 12, 2010; executing the plans and projects on production and trading of export goods as prescribed in the Law on Commercial; serving the production and trading of medium and small enterprises; developing the supporting industries; serving the production and trading of the high-tech application enterprises as prescribed in the Law on High Technologies, and relevant laws.