Official Dispatch No. 6486/NHNN-CSTT of July 16, 2008, application of interest rate to overdue principals

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Official Dispatch No. 6486/NHNN-CSTT of July 16, 2008, application of interest rate to overdue principals
Issuing body: State Bank of VietnamEffective date:
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Official number:6486/NHNN-CSTTSigner:Nguyen Dong Tien
Type:Official DispatchExpiry date:Updating
Issuing date:16/07/2008Effect status:
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Fields:Finance - Banking
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THE STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 6486/NHNN-CSTT
Re: application of interest rate to overdue principals
Hanoi, July 16, 2008
 
To: Credit institutions
With a view to implementing the direction of the Prime Minister, the State Bank of Vietnam provides guidance to credit institutions on the application of interest rate to overdue principals as follows:
The credit institutions shall apply interest rate to overdue principals in accordance with provisions of paragraph 2, Article 11 of the Regulation on lending by credit institutions to customers, issued in conjunction with the Decision No. 1627/2001/QD-NHNN dated 31 December 2001 of the Governor of the State Bank. As a result, the interest rate applicable to overdue principals shall be determined by credit institutions and agreed upon with customers in credit contracts, but it shall not exceed 150% of the loan interest rate applicable during the loan period as signed or adjusted in the credit contracts.
 
 
FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR




Nguyen Dong Tien
 
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