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

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./.