Circular No. 31/2016/TT-NHNN dated November 15, 2016 of the State Bank of Vietnam on amending, supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks

THE STATE BANK OF VIETNAM

Circular No. 31/2016/TT-NHNN dated November 15, 2016 of the State Bank of Vietnam on amending, supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks

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

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

Pursuant to the Order on foreign currency No. 28/2005/PL-UBTVQH11 dated December 13^th, 2005 and the Order amending, supplementing a number of articles of the Order on foreign currency No. 06/2013/PL-UBTVQH13 dated March 18, 2013;

Pursuant to the Decree No. 70/2014/ND-CP dated July 17, 2014 of the Government on detailing a number of articles of the Ordinance on foreign exchange and the Ordinance amending, supplementing a number of Articles of the Ordinance on foreign exchange;

Pursuant to the Decree No. 156/2013/ND-CP of November 11, 2013, defining the 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 Vietnam State Bank promulgates the Circular amending; supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks;

Article1. To amend, supplement Point c Clause 1 Article 3 of the Circular No. 24/2015/TT-NHNN

“c) Short-term loans granted to meet domestic enterprises’ demands for short-term capital to serve the purpose of implementing their plans to manufacture and/or trade goods exported through Vietnam’s border checkpoints when borrowers’ foreign currency derived from the export turnover is sufficient to repay such loans; on receipt of loans disbursed by credit institutions, borrowers shall sell such borrowed foreign currency to the lending credit institutions in the form of a foreign-exchange spot transaction, unless the loans borrowers are used by the borrowers to make payments in which foreign currency is compulsory as stipulated by laws. The regulation shall be effective till the end of December 31, 2017.”

Article 2.

To replace the Form No. 02 –Amounts of loans to be repaid and expected to be repaid by clients in 2016promulgated together with the Circular No. 24/2015/TT-NHNN by Form - Amounts of loans to be repaid and expected to be repaid by clients in the year attached together with this Circular.

Article 3. Implementation organization

1. This Circular takes effect on January 01, 2017.

2. Since the effective day of this Circular, the Circular No. 07/2016/TT-NHNN dated May 27, 2016 on supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks.

3. The Chief Officers, the Director of the Financial Policy Department and Heads of affiliates of the State Bank of Vietnam, Director of Provincial Branches of the State Bank of Vietnam; President of the Board of Directors, President of the Member Assembly and General Director (Director) of credit institutions, foreign banks’ branches shall be responsible for implementing this Circular./.

For the Governor

The Deputy Governor

Nguyen Thi Hong

FORM

Name of credit institutions, branches of foreign banks

AMOUNTS OF LOANS TO BE REPAID AND EXPECTED TO BE REPAID BY CLIENTS IN THE YEAR

Month ……. Year………

(Promulgated together with theCircular No. 31/2016/TT-NHNN dated November 15, 2016 of the Vietnam State Bank Governor on foreign currency loans granted to residents by credit institutions and branches of foreign banks)

Notes:

1. In the reporting month: Credit institutions shall report actual data of the month and expected data in each month for the following months;

2. Units receiving the report: Department of Monetary Policy Department, No. 49 Ly Thai To – Hanoi (email:[email protected], fax: 0438240132).

3. Full name and phone number of the person that is responsible for answering details on reports should be clearly provided.