To: Commercial Banks

In response to the direction of the Prime Minister at the Official Dispatch No. 5382/VPCP-KTTH dated 05/8/2011 on ensuring the supply-demand balance, stabilizing prices of food and foodstuff commodities, the Governor of the State Bank hereby requires commercial banks:

1. To seriously implement the Resolution No.11/NQ-CP of the Government and the Directive No. 01/CT-NHNN of the State Bank, continue to adjust the credit structures at the same time with improving credit quality, concentrate capital for production - business, giving priority to agricultural production, contributing to the maintenance, expansion of production so as to ensure the food supply to the market, securing the demand and supply balance, stabilizing prices of food and foodstuff commodities.

2. To take initiative in balancing the own capital resources for timely meeting demand of capital for agricultural production, particularly livestock premises in accordance with current stipulations at a reasonable interest rate. More attention should be paid to lending to livestock premises, projects and plans of agricultural production that have efficient performance, that do their business on the basis of the value chain and that attach their production to circulation of food, foodstuff to highly populated regions.

3. To comply with provisions on credit policy to serve agricultural and rural development in line with the Decree No. 41/2010/ND-CP dated 12 April 2010 of the Government and guidance of the State Bank at the Circular No. 14/2010/TT-NHNN dated 14 June 2010. To make available the policy on harmonizing capital and giving support in lending to livestock premises, key regions that have urgent demand for capital for doing investment, forming food, green regions and belts in association with an efficient plan of circulation, distribution that has already been approved by People’s Committee of provinces, cities.

4. To check, closely monitor the use of loan fund, timely detecting and dealing with arising difficulties, queries within the scope of competence. In any case where a customer incurs damages due to natural disaster, epidemic diseases, and commercial banks shall restructure their debts and handle the affected customer, at the same time, create favorable condition for the customer to continue borrowing capital with the purpose of maintaining and expanding production in accordance with current provisions of applicable laws.

5. To take advantage of the direction by the executive level, local authorities, closely coordinating with departments, offices, industries, unions, State Bank’s branch in province, city in raising and investing in efficient plans, projects of agricultural production, livestock; inspecting, monitoring the process of lending and handling of difficulties, queries arising in the credit relations between commercial banks and their customers in the local region.

6. The State Bank’s branches in provinces, cities shall timely catch up with the situation of lending by commercial banks to their customers in conformity with contents of this Official Dispatch and give support to settle difficulties in the credit relations between commercial banks and enterprises in line with directions of the Governor of the State Bank at the Official Dispatch No. 2569/NHNN-VP dated 1 April 2011 of the State Bank of Vietnam.

7. During the implementation, any arising difficulty, query shall be timely reported to the State Bank for consideration and timely settlement.