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

THE STATE BANK OF VIETNAM

Circular No. 09/2013/TT-NHNN of March 25, 2013, 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

Pursuant to June 16, 2013 Law No. 46/2010/QH2 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH2 on Credit Institutions;

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 promulgates the Circular 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.

Article 1. Maximum Vietnam dong short-term lending interest rates applied by credit institutions and foreign bank branches

1. The maximum Vietnam dong short-term lending interest rate is 11% per annum particularly; people’s credit funds and microfinance institutions may fix the maximum Vietnam dong short-term lending interest rate of 12% per annum.

2. Short-term loans in Vietnam dong provided with the maximum lending interest rate as stipulated in Clause 1 of this Article are loans to meet capital demands for:

a/ Agriculture and rural development as stipulated in the Government’s Decree No. 41/2010/ND-CP of April 12, 2010, on the credit policy to serve agricultural and rural development;

b/ Export production and business plans and projects as prescribed by the Commercial Law;

c/ Production and business activities of small- and medium-sized enterprises as specified in the Government’s Decree No. 56/2009/ND-CP of June 30, 2009, on supporting the development of small- and medium-sized enterprises;

d/ Developing supporting industries as stipulated in the Prime Minister’s Decision No. 12/2011/QD-TTg of February 24, 2011, on policies to develop a number of supporting industries;

dd/ Production and business activities of hi-tech enterprises as prescribed in the Hi-Tech Law and other relevant laws.

Article 2. Responsibilities of borrowers

1. Customers of credit institutions and foreign bank branches eligible for the lending interest rates specified in Article 1 of this Circular are those satisfying the conditions for borrowing loans according to the State Bank of Vietnam’s regulations on lending activities of credit institutions and foreign bank branches for customers and having their financial status assessed to be transparent and healthy by credit institutions and foreign bank branches.

2. Borrowers shall provide information and documents proving the purpose of borrowing loans for sectors or fields eligible for the lending interest rates specified in this Circular and take responsibility before law for the truthfulness and accuracy of provided information and documents.

Article 3. Responsibilities of credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches shall publicize the lending interest rates and criteria for identifying borrowers as stipulated in Clause 2, Article 1 and Clause 1,  Article 2 of this Circular.

2. Credit institutions and foreign bank branches shall provide loans to borrowers specified in this Circular according to the law on lending activities and prudential ratios in activities of credit institutions and foreign bank branches and other relevant laws, and may not collect any charges related to the loans, except certain charges stipulated in Circular No. 05/2011/TT-NHNN of March 10, 2011, of the Governor of the State Bank of Vietnam, on lending fees charged by credit institutions to borrowers.

Article 4. Organization of implementation

1. This Circular takes effect on March 26, 2013, and replaces Circular No. 33/2012/TT-NHNN of December 21, 2012, of the Governor of the State Bank of Vietnam, stipulating the maximum Vietnam dong short-term lending interest rate to be applied by credit institutions and foreign bank branches for borrowers to meet capital demands of a number of economic sectors and fields.

2. Lending interest rates applied to credit contracts signed before the effective date of this Circular continue to be implemented under the signed credit contracts in accordance with regulations effective at the time of signing.

3. For other loans not specified in this Circular, credit institutions and foreign bank branches shall comply with Circular No. 12/2010/TT-NHNN of April 14, 2010, of the Governor of the State Bank of Vietnam, guiding credit institutions to provide borrowers Vietnam dong loans at negotiable interest rates.

4. The chief of the Office, the director of the Monetary Policy Department and heads of units of the State Bank of Vietnam, directors of the State Bank of Vietnam’s branches in provinces and centrally run cities; chairpersons of the Boards of Directors or Members’ Councils and directors general (directors) of credit institutions and foreign bank branches, and other related organizations and individuals shall implement this Circular.-

For the State Bank Governor
Deputy Governor
NGUYEN DONG TIEN