Circular No. 20/2012/TT-NHNN dated June 08, 2012 of the State Bank of Vietnam amending, supplementing some articles of the Circular no. 14/2012/TT-NHNN dated May 04, 2012 stipulating the maximum VND short-term lending rate to be charged by credit institutions and foreign bank branches for borrowers to meet the capital requirements for several sectors

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Issuing body:	State Bank of Vietnam	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	20/2012/TT-NHNN	Signer:	Nguyen Dong Tien
Type:	Circular	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	08/06/2012	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Finance - Banking

SUMMARY

THE MAXIMUM SHORT-TERM LENDING RATE IN VIETNAMESE DONG IS 13% P.A

The State Bank of Vietnam issued the Circular No. 20/2012/TT-NHNN dated June 08, 2012 amending and supplementing a number of Articles of the Circular No. 14/2012/TT-NHNN dated May 04, 2012 stipulating the maximum interest rate for short term loan in Vietnamese dong of credit institutions, foreign bank branches for borrowers to meet the capital requirements for several sectors.

Under this Circular, the maximum short-term lending rate in Vietnamese dong is 13% p.a; the maximum short-term lending rate in Vietnamese dong by credit institutions particularly is14% p.a.

Together with the promulgation of the new interest rate being 13% p.a, since June 11, 2011, the maximum interest rate in Vietnam dong will not depend on the mobilization interest rate (plus 3% of the mobilization interest rate) as previously. .

This Circular shall take effect on June 11, 2012.

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THE STATE BANK OF VIETNAM
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No: 20/2012/TT-NHNN

SOCIALISTREPUBLIC OF VIETNAM

Independence - Freedom – Happiness

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Hanoi, June 08, 2012

CIRCULAR

AMENDING, SUPPLEMENTING SOME ARTICLES OF THE CIRCULAR NO. 14/2012/TT-NHNN DATED MAY 04, 2012 STIPULATING THE MAXIMUM VND SHORT-TERM LENDING RATE TO BE CHARGED BY CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES FOR BORROWERS TO MEET THE CAPITAL REQUIREMENTS FOR SEVERAL SECTORS

Pursuant to the Law on the State Bank of Vietnam No.46/2010/QH12 of June 16, 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12, of June 16, 2010;

Pursuant to the Government’s Decree No. 96/2008/ND-CP, of August 26, 2008, on regulating functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of Monetary Policy Department;

The Governor of the State Bank of Vietnam issued the Circular amending, supplementing some Articles of the Circular No. 14/2012/TT-NHNN dated May 04, 2012 stipulating the maximum interest rate for short term loan in Vietnamese dong of credit institutions, foreign bank branches for borrowers to meet the capital requirements for several sectors.

Article 1.Amending, supplementing some Articles of the Circular No. 14/2012/TT-NHNN dated May 04, 2012 stipulating the maximum interest rate for short term loan in Vietnamese dong of credit institutions, foreign bank branches for borrowers to meet the capital requirements for several sectors as follows:

“1. The maximum short-term lending rate in Vietnamese dong is 13% p.a; the maximum short-term lending rate in Vietnamese dong by credit institutions particularly is14% p.a”

Article 2.Implementation provisions

1. This Circular shall take effect on June 11, 2012.

2.Forsignedcredit contractsprior tothe effective date of this Circular,credit institutionsand branches of foreign banksand their borrowers shall implement according tocontentsofthe signed credit contractin compliance withprovisions of laws whichare effectiveat the timeof signing of credit contracts.

4. The chiefoftheAdministrative Department,Director Generalof the Monetary Policy Department, Headsof unitsunder the State Bank of Vietnam, Managersofbranches ofthe State Bankof Vietnam in provincesand centrally-runcities,Chairman ofthe Board ofDirectors,Chairman ofthe Members’ Council and GeneralDirectors(Directors) of credit institutions,branches of foreign banks, otherrelatedorganizations and related individuals shall be responsible for the implementation of this Circular./.