Decision No. 200/QD-NH1 on amending and supplementing certain provisions of the Medium and Long-term Credit Regulations issued together with Decision No. 367/QD-NH1 dated December 21, 1995 of the Governor of the State Bank.

Pursuant to …;

Regarding the amendment and supplementation of certain articles of the Medium and Long-Term Credit Regulations issued
together with Decision No. 367/QĐ-NH1 dated December 21, 1995 of the Governor of the State Bank

GOVERNOR OF THE STATE BANK OF VIETNAM

On the basis of the Banking Law of Vietnam; the Banking, Credit Cooperatives, and Financial Companies Ordinance dated May 23, 1990;

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

On the basis of Decree No. 42/CP dated July 16, 1996 of the Government on the issuance of the Investment Management and Construction Charter; Pursuant to the proposal of the Director of the Economic Research Department;

DECISION:

Article 1. Amend and supplement certain clauses of the Medium and Long-Term Credit Regulations issued together with Decision No. 367/QĐ-NH1 dated December 21, 1995 of the Governor of the State Bank:

1. Clause 4 of Article 1 shall be amended as follows:

"The total investment amount is the maximum cost limit that the competent authority for investment decision permits the investor to choose among various project implementation options."

2. Clause 7 of Article 1 shall be amended as follows:

"Medium-term credit is a type of loan with a term from one to five years; long-term credit is a type of loan with a term of five years or more; however, the maximum lending period shall not exceed the depreciation period required for assets formed with borrowed funds."

3. Amend and supplement certain borrowing conditions:

3.1 Clause 2 of Article 7 shall be amended as follows:

"The project or loan, according to economic calculations, must have economic efficiency and identify sources of capital to repay debt. The production and business results of the borrower must not incur losses and must not have overdue debts with the bank. However, in the following cases, the lender may consider granting further loans:

a. Enterprises belonging to the category receiving government subsidies under policy.

b. The production and business results of the borrower, which is a state-owned enterprise, are currently incurring losses, if there is a new production and business plan with economic efficiency capable of overcoming losses to repay the bank's debt; such plans must be approved by the relevant ministry or agency (for central enterprises) or the provincial People's Committee (for local enterprises).

c. The borrower has overdue debts with the bank, but these overdue debts are due to changes in government policies or force majeure."

3.2 Clause 4 of Article 7 shall be amended as follows:

"The borrower must implement measures to ensure the obligation to repay the debt (the obligation to repay includes: principal, interest, and late interest penalties), except where otherwise provided by law. The selection of security measures such as mortgage, pledge, guarantee, etc., is decided by the credit organization for each specific project or loan. The procedures and formalities for mortgage, pledge, and guarantee are carried out in accordance with current regulations on mortgage, pledge, and bank loan guarantee."

3.3 Article 7 shall be supplemented with Clause 9 as follows:

"The investment project must be decided on investment, permitted to invest, and granted an investment permit in accordance with Article 7 of the Investment Management and Construction Charter issued together with Decree No. 42/CP dated July 16, 1996 of the Government."

"Within fifteen days from the date of receiving complete and valid application documents for Work Permits, the agency authorized by the Ministry of Labor, Invalids and Social Affairs must issue a Work Permit for foreigners. In case the permit cannot be issued, a written response must be provided stating the reasons."

"Credit organizations shall not lend more than 10% of their own capital and reserve fund to a single customer. The total amount lent to the ten largest borrowers shall not exceed 30% of the total outstanding loan balance of the credit organization."

5. Clause 3 of Article 14 shall be supplemented at the end of the sentence: "...except for newly established enterprises operating within the first quarter requesting a loan."

6. Clause 1 of Article 18 shall be amended as follows: "In case the borrower fails to repay the loan on time for a specific repayment period due to objective reasons, if there is a written request for extension of the loan repayment period, the lender shall consider extending the repayment period for each specific repayment period, but the total extended period for all repayment periods of a single credit contract shall not exceed one-third (one third) of the original loan term before the extension."

7. Supplement Article 21a. Debt Purchase and Sale between Credit Organizations:

Credit organizations are allowed to purchase and sell medium and long-term debts from each other. The debt purchase and sale operations between credit organizations shall be conducted in accordance with the debt purchase and sale charter issued by the Governor of the State Bank.

Article 2. This Decision takes effect 15 days from the date of signature.

Article 3. The Heads of units under the State Bank of Vietnam; the Directors of provincial and centrally-administered city branches of the State Bank of Vietnam; the Chairmen of the Boards of Management and General Managers (Directors) of credit organizations shall be responsible for implementing this Decision.