Circular No. 01/2009/TT-NHNN guiding the agreed interest rate of credit institutions for loans to meet living capital needs and loans through credit card issuance and usage operations

CIRCULAR

Guidelines on the agreed interest rate of credit institutions for loans to meet capital needs serving life and loans through credit card issuance and usage activities

||| Loans to meet capital needs serving life, loans through credit card issuance and usage activities

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Pursuant to Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government on urgent measures to prevent economic decline, maintain economic growth, and ensure social welfare;
Pursuant to the directive of the Prime Minister in Official Letter No. 627/VPCP-KTTH dated January 23, 2009 of the Government Office on applying the agreed interest rate for loans by credit institutions;

The State Bank of Vietnam hereby provides guidelines on the agreed interest rate of credit institutions for loans to meet capital needs serving life and loans through credit card issuance and usage activities as follows:

1. Credit institutions shall implement the agreed interest rate for loans to meet capital needs serving life and loans through credit card issuance and usage activities in accordance with the regulations of the State Bank of Vietnam on loans by credit institutions to customers and based on the supply and demand of capital in the market and the creditworthiness of borrowing customers.

2. Credit institutions shall determine credit limits for a customer and for lending to meet capital needs serving life and loans through credit card issuance and usage activities in compliance with the regulations of the State Bank of Vietnam on safety ratios in the operation of credit institutions and the business conditions of credit institutions.

3. Credit institutions shall strictly control credit limits and the quality of credit for loans to meet capital needs serving life and loans through credit card issuance and usage activities.

4. This Circular takes effect from February 1, 2009.

5. The Heads of the Office, Department Heads of Monetary Policy Department, and Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally governed cities; Chairmen of Management Boards and General Directors (Directors) of credit institutions are responsible for implementing this Circular./.