Official Dispatch No. 9756/NHNN-CSTT dated December 10, 2009 of the State Bank of Vietnam on interest rate in the inter-bank market

The interest rate in the inter-bank market has been increasing since the beginning of December 2009 due to the fact that credit institutions (branches of credit institutions) have been mobilizing and providing loans in Vietnamese Dong in the inter-bank market with high interest rate. In order to stabilize the currency market, the Governor of the State Bank hereby requires credit institutions and State Bank branches in provinces, cities to implement the followings:

1. In respect of credit institutions

- To apply the interest rate of mobilization and lending in Vietnamese Dong among credit institutions in the inter-bank market in accordance with the Official Dispatch No. 7585/NHNN-CSTT dated 19 August 2008. Whereas, the interest rate of mobilization and lending in Vietnamese Dong among credit institutions shall not be permitted to exceed 150% of the base interest rate announced by the State Bank for application from time to time.

- To centrally carry out the mobilization and lending in Vietnamese Dong among credit institutions in the inter-bank market at Head Office of credit institutions. Credit Institutions shall not be permitted to assign (authorize) their branches to implement the mobilization and lending to other credit institutions.

2. For State Bank branches in provinces, cities: To carry out the examination, supervision, inspection and treatment, within their authority, over the implementation of provisions of applicable laws and guideline of the State Banks of Vietnam, by credit institutions in the locality, on the interest rate of mobilization and lending in Vietnamese Dong among credit institutions in the inter-bank market; to promptly make report and recommendations to the State Bank of Vietnam for dealing with arising issues to stabilize the currency market.