Decision No. 1310/2001/QD-NHNN On the issuance of the Interbank Loan Regulations

Pursuant to …;

Regarding the issuance of the Interbank Loan Regulations

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to Decree No. 86/2002/ND-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for management of Ministries and ministerial-level agencies;

At the proposal of the Director of the Credit Department.

Pursuant to …;

Article 1: The Interbank Loan Regulations are hereby issued together with this Decision.

Article 2: This Decision shall take effect fifteen days from the date of signature and shall replace Decisions No. 114/QĐ-NH14 dated June 21, 1993, of the Governor of the State Bank on the issuance of the "Regulations on the Organization and Operation of the Interbank Market and Internal Rules for the Operation of the Interbank Market"; Decision No. 190/QĐ-NH14 dated October 6, 1993, of the Governor of the State Bank on supplementing and amending certain provisions of the Regulations and internal rules for the operation of the interbank market; Directive No. 07/CT-NH dated October 7, 1992, of the State Bank on credit relations between credit institutions; Decision No. 130/QĐ-NH1 dated July 7, 1993, of the Governor of the State Bank on interest rates for loans on the interbank market; Decision No. 132/QĐ-NH14 dated July 10, 1993, of the Governor of the State Bank on the establishment of the interbank market; Decision No. 134/QĐ-NH14 dated July 14, 1993, of the Governor of the State Bank on recognizing members of the interbank market; Decision No. 136/QĐ-NH2 dated July 20, 1993, of the Governor of the State Bank on the contribution level to participate in the interbank market; Decision No. 189/QĐ-NH14 dated October 6, 1993, of the Governor of the State Bank on the issuance of the Guarantee Regulations for Loans on the Interbank Market.

Article 3: The Heads of the Office, Department Heads of the Credit Department, heads of relevant units under the State Bank, Governors of the State Bank Branches in provinces and cities, Chairmen of the Boards of Management, General Directors (Directors) of credit institutions are responsible for implementing this Decision.

REGULATIONS

INTERBANK LOANS REGULATIONS
(Issued together with Decision No. 1310/2001/QĐ-NHNN dated October 15, 2001, of the Governor of the State Bank)

Article 1. Scope of application

These Regulations govern the lending and borrowing relationships between credit institutions operating in Vietnam, aiming to ensure the ability to make payments and to use credit funds effectively.

Article 2. Definitions

In these regulations, the following terms are understood as follows:

1. "Interbank loans" refer to the provision of credit in the form of loans from a credit institution (the lender) to another credit institution (the borrower) as stipulated in Article 47 of the Law on Credit Institutions.

2. "Loan term" refers to the period from when the borrower receives the loan until the full repayment of principal, interest, and any fees (if applicable) to the lender. The parties may agree to divide the loan term into different repayment periods.

3. "Credit limit" is the maximum outstanding loan balance that can be maintained within a specified period as agreed between the lender and the borrower.

Article 3. Applicability

Credit institutions established and operating in Vietnam according to the Law on Credit Institutions include:

1. Commercial banks, development banks, investment banks, policy banks, cooperative banks.

2. Foreign bank branches in Vietnam; Joint venture banks.

3. Non-bank credit institutions.

4. People's Credit Funds.

Article 4. Principles for lending and borrowing

When implementing lending and borrowing activities, the parties must ensure the following principles:

1. The borrower must repay the principal, interest, and any fees (if applicable) to the lender on time.

2. Lending and borrowing between the parties must ensure safety and comply with Vietnamese laws and international practices.

Article 5. Loan term

1. Short-term loans: up to 12 months.

2. Medium-term loans: from over 12 months to 60 months.

3. Long-term loans: over 60 months.

Article 6. Interest Rate for Loans

1. The loan interest rate is agreed upon by the parties and must comply with the law.

2. The parties may agree to apply an overdue interest rate on the amount of the loan not repaid on time and not extended by the lender. The maximum overdue interest rate is 150% of the loan interest rate.

Article 7. Guarantee for loans

The parties may agree to apply or not apply collateral for the loan in specific cases. Collateral for the loan includes asset collateral and guarantee by another credit institution. The application of collateral and the handling of collateral assets are carried out in accordance with the law.

Article 8. Methods of lending

The parties may agree to apply single disbursement, credit limit, or other methods consistent with the law.

Article 9Currency of transactions

1. Credit institutions may lend and borrow from each other in Vietnamese Dong.

2. A credit institution may lend or borrow in foreign currency or both lend and borrow in foreign currency based on the scope of foreign exchange operations permitted by the State Bank.

Article 10. Rights and obligations of the parties

1. Rights and obligations of the lender

a. Request the borrower to provide necessary documents related to the loan; refuse the borrower's request for a loan if it does not meet the conditions for lending;

b. Have the right to require the borrower to provide asset collateral for the loan;

c. Extend the loan term, adjust repayment periods; reduce the loan interest rate, transfer overdue debt;

d. Require the borrower to repay the loan ahead of schedule if the parties have agreed on early repayment, the conditions triggering the obligation to repay early, and the borrower breaches one of those conditions;

đ. If at maturity the borrower or guarantor fails to fulfill their obligations and there is no other agreement, the lender has the right to dispose of the collateral securing the loan or sue the borrower and guarantor in accordance with the law;

e. Fulfill commitments already agreed upon with the borrower.

2. Rights and obligations of the borrower

Repay the principal, interest, and any fees (if applicable) fully and on time as agreed;

b. Provide truthful information and documents related to the loan as requested by the lender;

c. Have the right to repay the loan ahead of schedule if both parties have agreed or if approved by the lender;

d. Fulfill other commitments already agreed upon with the lender;

đ. Sue the lender in accordance with the law if the lender breaches the agreed commitments.

Article 11Reporting system

Credit institutions must compile and report to the State Bank the situation of lending and borrowing from other credit institutions as prescribed by the State Bank.

Article 12. Implementation

Credit institutions shall base themselves on this regulation and other relevant legal documents to guide lending and borrowing activities between credit institutions, in accordance with the characteristics and organizational models of credit institutions.

Article 13. Any supplementation or amendment to this Regulation shall be decided by the Governor of the State Bank.