Circular No. 12/2010/TT-NHNN guiding credit institutions to lend in Vietnamese dong at agreed interest rates to customers

CIRCULAR

Guidelines for credit institutions to lend in Vietnamese dong to customers at agreed interest rates

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Pursuant to the Law on the State Bank of Vietnam 1997; the Law Amending and Supplementing Certain Articles of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Institutions 1997; the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions 2004;

Pursuant to Resolution No. 23/2008/NQ-QH12 dated November 6, 2008 of the National Assembly on the plan for economic and social development in 2009;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Resolution No. 12/NQ-CP dated March 7, 2010 of the Government on the regular meeting of the Government in February 2010;

Pursuant to Resolution No. 18/NQ-CP dated April 6, 2010 of the Government on measures to ensure macroeconomic stability, prevent high inflation, and achieve an economic growth rate of approximately 6.5% in 2010;

Pursuant to the guidance of the Prime Minister in Document No. 627/VPCP-KTTH dated January 23, 2009 of the Government Office on the application of agreed lending interest rates by credit institutions;

The State Bank of Vietnam guides credit institutions to lend in Vietnamese dong to customers at agreed interest rates as follows:

Article 1. Credit institutions shall implement lending in Vietnamese dong at agreed interest rates to customers to meet the capital needs of projects, production plans, business operations, services, investment development, and effective living standards.

Article 2. Credit institutions shall publicly display reasonable lending interest rates based on market supply and demand for capital, borrowing needs, and the creditworthiness of borrowers, aiming to reduce operating costs, facilitate customer access to loans for production and business development, especially in agriculture and rural areas, export enterprises, small and medium-sized enterprises; adjust lending interest rates in accordance with fluctuations in deposit interest rates in Vietnamese dong and the objectives and measures for monetary policy management by the State Bank of Vietnam.

Article 3. Credit institutions shall report to the State Bank of Vietnam on lending interest rates in Vietnamese dong according to the annex attached to this Circular and other documents of credit institutions regarding lending interest rates immediately upon issuance.

Article 4. This Circular takes effect from the date of signature. Provisions of the State Bank of Vietnam on lending interest rates in Vietnamese dong of credit institutions to customers become invalid, including: Circular No. 07/2010/TT-NHNN dated February 26, 2010 on lending in Vietnamese dong at agreed interest rates by credit institutions to customers and related implementation guidelines; provisions on lending interest rates pursuant to Decision No. 16/2008/QD-NHNN dated May 16, 2008 on the mechanism for managing basic interest rates in Vietnamese dong; Decision No. 33/2008/QD-NHNN dated December 3, 2008 on lending interest rates in Vietnamese dong of People's Credit Funds for customers. For credit contracts signed before the effective date of this Circular, credit institutions and borrowers shall continue to perform the signed credit contracts; or credit institutions and borrowers may agree to amend and supplement the credit contracts in compliance with the provisions of this Circular and relevant laws.

Article 5. The Head of the Office, Heads of Departments under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities; Chairmen of Management Boards and General Directors (Directors) of credit institutions, borrowers at credit institutions are responsible for implementing this Circular./.