Circular No. 33/2012/TT-NHNN dated December 21, 2012 of the State Bank of Vietnam on the maximum rates of interest on short-term loans in VND imposed by credit institutions and branches of foreign banks on their borrowers in order to satisfy the demand for capital serving some economic sectors and disciplines

CIRCULAR

ON THE MAXIMUM RATES OF INTEREST ON SHORT-TERM LOANS IN VND IMPOSED BY CREDIT INSTITUTIONS AND BRANCHES OF FOREIGN BANKS ON THEIR BORROWERS IN ORDER TO SATISFY THE DEMAND FOR CAPITAL SERVING SOME ECONOMIC SECTORS AND DISCIPLINES

Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12 dated June 16^th2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16^th2010;

Pursuant to the Government s Decree No. 96/2008/NĐ-CP on August 26^th2008, defining the functions, tasks, powers and organizational structure of the State bank of Vietnam;

At the proposal of the Director of the Financial Policy Department;

The Governor of the State bank of Vietnam promulgates a Circular on the maximum rates of interest on short-term loans in VND imposed by credit institutions and branches of foreign banks on their borrowers in order to satisfy the demand for capital serving some economic sectors and disciplines,

Article 1. The rates of interest on short-term loans in VND imposed by credit institutions and branches of foreign banks

1. The maximum rate of interest on short-term loans in VND is 12% per year; people s credit funds and microfinance institutions may impose the maximum interest rate of 13% on short-term loans in VND.

2. The short-term loans in VND that are eligible for the maximum interest rate prescribed in Clause 1 this Article are the loans that satisfy the demands for capital that is used for:

a) Serving the development agriculture and rural areas as prescribed in the Government s Decree No. 41/2010/NĐ-CP dated April 12^th2010 on the financial policies serving the services of agriculture and rural areas;

b) Executing the projects of production and trading of exports as prescribed in the Commercial Law;

c) Serving the production and trading of medium and small enterprises prescribed in the Government s Decree No. 56/2009/NĐ-CP dated June 30^th2009 on supporting the development of medium and small enterprises;

d) Developing the ancillary industries as prescribed in the Prime Minister’s Decision No. 12/2011/QĐ-TTg dated February 24^th2011 on the policies on the development of some ancillary industries;

dd)) Serving the production and trading of the high-tech enterprises as prescribed in the Law on High Technologies, and relevant laws.

Article 2. Responsibility of borrowers

1. The borrowers eligible for the loan interest rates prescribed in Article 1 of this Circular are the borrowers that satisfy the loan conditions in accordance with the regulations of the State bank of Vietnam on the loans given by credit institutions and branches of foreign banks to their clients, and their financial conditions are considered transparent and healthy by the credit institution and branches of foreign banks.

2. The borrowers shall provide the information and documents proving the purposes of capital loans serving to the disciplines eligible for the loan interest rates prescribed in this Circular, and take responsibility before law for the accuracy of the information and documents provided.

Article 3. Responsibility of credit institutions and branches of foreign banks

1. Credit institutions and branches of foreign banks shall publicly post the loan interest rates, the criteria for identifying borrowers as prescribed in Clause 2 Article 1 and Clause 1 Article 2 of this Circular.

2. The credit institutions and branches of foreign banks that give loans to the borrowers prescribed in this Circular in accordance with the laws on loaning and the safety ratio of credit institutions and branches of foreign banks, and other regulations of relevant laws; do not collect the fees related to the loans given to clients, except for some fees prescribed in the Circular No.  05/2011/TT-NHNN dated March 10^th2011 of the Governor of the State bank of Vietnam, on the loaning loan fees collected by credit institutions.

Article 4. Implementation organization

1. This Circular takes effect on December 24^th2012, and supersedes:

a) The Circular No. 14/2012/TT-NHNN dated May 04^th2012 of the Governor of the State bank of Vietnam, on the maximum rates of interest on short-term loans in VND imposed by credit institutions, branches of foreign banks on their borrowers in order to satisfy the demand for capital serving some economic sectors and disciplines.

a) The Circular No. 20/2012/TT-NHNN dated June 08^th2012 of the Governor of the State bank of Vietnam, amending and supplementing a number of articles of the Circular No. 14/2012/TT-NHNN dated May 04^th2012 on the maximum rates of interest on short-term loans in VND imposed by credit institutions, branches of foreign banks on their borrowers in order to satisfy the demand for capital serving some economic sectors and disciplines.

2. The loan interest rates in the credit contracts signed before this Circular takes effect shall remain unchanged in accordance with the signed credit contracts and law provision at the time of contract signing.

3. For the loans not being prescribed in this Circular, credit institutions and branches of foreign banks shall follow the Circular No. 12/2010/TT-NHNN dated April 14^th2010 of the Governor of the State bank of Vietnam, guiding the loans in VND given by credit institutions to their clients at agreed interest rates.

4. The Chief Officer, the Director of the Financial Policy Department, Directors of the units affiliated to the State bank of Vietnam, Directors of branches of the State bank at central-affiliated cities and provinces ; Presidents of the Boards of Directors, the Member assembly, General Directors (Directors) of credit institutions and branches of foreign banks, and relevant organizations and individuals are responsible for the implementation of this Circular./.