Circular No. 07/2016/TT-NHNN amending and supplementing certain articles of Circular No. 24/2015/TT-NHNN dated December 8, 2015, issued by the Governor of the State Bank of Vietnam on foreign currency loans by credit institutions and foreign bank branches to resident borrowers.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the Governor of the State Bank of Vietnamon foreign currency loans granted by credit institutions and branches of foreign banks to resident borrowers   Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;   Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010; 

  Pursuant to the Foreign Exchange Law No. 28/2005/PL-UBTVQH11 dated December 13, 2005 and the Law Amending and Supplementing Certain Provisions of the Foreign Exchange Law No. 06/2013/UBTVQH13 dated March 18, 2013;

  Pursuant to Decree No. 70/2014/NĐ-CP dated July 17, 2014 of the Government guiding the implementation of certain provisions of the Foreign Exchange Law and the Law Amending and Supplementing Certain Provisions of the Foreign Exchange Law;

  Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

  On the proposal of the Head of the Monetary Policy Department;

  The Governor of the State Bank of Vietnam hereby promulgates this Circular amending and supplementing certain Articles of Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the Governor of the State Bank of Vietnam on foreign currency loans granted by credit institutions and branches of foreign banks to resident borrowers.

Article 1. Amending and supplementing Point c Clause 1 Article 3 of Circular No. 24/2015/TT-NHNN

"c) Granting short-term loans to meet short-term capital needs within the country for implementing production and business plans for goods exported through border gates of Vietnam, provided that the borrower has sufficient foreign currency from export proceeds to repay the loan; when the credit institution or branch of a foreign bank disburses the loan, the borrower must sell the borrowed foreign currency to the credit institution or branch of a foreign bank that granted the loan in the form of spot foreign exchange transactions, except in cases where the borrower's need for funds is to execute payment transactions which must be denominated in foreign currency under the law. This provision shall be implemented until December 31, 2016;"

1. This Circular takes effect from June 1, 2016.

2. The Heads of the Office, the Head of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam Branches in provinces and centrally-administered cities; Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Directors (Directors) of credit institutions and branches of foreign banks are responsible for organizing the implementation of this Circular./.

Article 2. Implementation clause

1. This Circular shall take effect from June 1, 2016.

2. The Director of the Office, the Head of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally governed cities; the Chairmen of the Management Boards, the Chairmen of the Members' Councils, and the General Directors (Directors) of credit organizations and foreign bank branches shall be responsible for organizing the implementation of this Circular./.