Circular No. 08/2014/TT-NHNN stipulates the interest rate for short-term loans in Vietnamese dong provided by credit institutions to borrowers for capital needs serving certain economic sectors and industries.

 CIRCULAR

Regulations on interest rates for short-term loans in Vietnamese dong by credit organizations to borrowers for capital needs serving certain economic sectors and industries

credit for borrowers to meet capital needs serving

certain economic sectors and industries

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

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;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular regulating the interest rates for short-term loans in Vietnamese dong by credit organizations to borrowers for capital needs serving certain economic sectors and industries.

Article 1. Interest rates for short-term loans in Vietnamese dong by credit organizations

1. Credit organizations, including foreign bank branches (hereinafter referred to as credit organizations), shall apply interest rates for short-term loans in Vietnamese dong not exceeding the maximum interest rate determined by the Governor of the State Bank of Vietnam for each period and type of credit organization.

2. Short-term loans in Vietnamese dong subject to the maximum interest rate prescribed in Clause 1 of this Article are those loans intended to meet the following capital needs:

a) To serve the development of agriculture and rural areas as provided for in Decree No. 41/2010/NĐ-CP dated April 12, 2010 of the Government on credit policies to support the development of agriculture and rural areas;

b) To implement production and business plans and projects for export goods as provided for in the Law on Trade;

c) To serve the production and business activities of small and medium-sized enterprises as provided for in Decree No. 56/2009/NĐ-CP dated June 30, 2009 of the Government on assistance for the development of small and medium-sized enterprises;

d) To develop supporting industries as provided for in Decision No. 12/2011/QĐ-TTg dated February 24, 2011 of the Prime Minister on policies to develop certain supporting industries;

đ) To serve the production and business activities of high-tech enterprises as provided for in the Law on High Technology and other relevant laws.

Article 2. Borrower's responsibilities

1. Borrowers from credit organizations applying the interest rates prescribed in Clause 1 of Article 1 of this Circular are those borrowers who meet the conditions for borrowing as stipulated by the State Bank of Vietnam regarding lending activities of credit organizations to borrowers and are assessed by credit organizations as having transparent and sound financial situations.

2. Borrowers have the responsibility to provide information and documents proving that their loan purposes fall within the sectors and industries eligible for the interest rates prescribed in this Circular and bear legal responsibility for the truthfulness and accuracy of the information and documents provided.

Article 3. Responsibilities of credit organizations

1. Credit organizations shall publicly announce the interest rates for loans; the criteria for determining borrowers as prescribed in Clause 2 of Article 1 and Clause 1 of Article 2 of this Circular.

2. Credit organizations shall implement lending activities to borrowers as prescribed in this Circular in accordance with the laws governing lending activities, safety ratios in credit organization operations, and other relevant laws; they may not charge fees related to loans to borrowers except for certain fees as prescribed in Circular No. 05/2011/TT-NHNN dated March 10, 2011 of the Governor of the State Bank of Vietnam on charging fees for loans by credit organizations to borrowers.

Article 4. Organization of Implementation

1. This Circular takes effect from March 18, 2014 and replaces Circular No. 16/2013/TT-NHNN dated June 27, 2013 of the Governor of the State Bank of Vietnam on maximum interest rates for short-term loans in Vietnamese dong by credit organizations, including foreign bank branches, to borrowers for capital needs serving certain economic sectors and industries.

2. Interest rates applicable to credit contracts signed before the effective date of this Circular shall continue to be implemented according to the terms of the signed credit contracts in compliance with the laws at the time of signing the contracts.

3. For loans outside the scope prescribed in this Circular, credit organizations shall implement in accordance with Circular No. 12/2010/TT-NHNN dated April 14, 2010 of the Governor of the State Bank of Vietnam guiding credit organizations to lend in Vietnamese dong to borrowers at agreed interest rates.

4. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities; Chairmen of Management Boards, Chairmen of Board of Members and General Directors (Directors) of credit organizations, including foreign bank branches, are responsible for implementing this Circular.