Circular No. 33/2012/TT-NHNN stipulates the maximum interest rate for short-term loans in Vietnamese dong provided by credit institutions and foreign bank branches to borrowers for capital needs serving certain economic sectors and industries.

CIRCULAR

Regulations on the maximum interest rate for short-term loans in Vietnamese dong

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

to meet capital needs serving certain economic sectors and industries

_________________

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. 96/2008/NĐ-CP dated May 26, 2008 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 maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches for borrowers to meet capital needs serving certain economic sectors and industries,

Article 1. Interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches

1. The maximum interest rate for short-term loans in Vietnamese dong is 12% per annum; specifically, for Credit Cooperatives and Microfinance Organizations, the maximum interest rate for short-term loans in Vietnamese dong is 13% per annum.

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 prescribed 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 prescribed in Decision No. 12/2011/QĐ-TTg dated February 24, 2011 of the Prime Minister on policies to develop certain supporting industries; 1. Borrowers of credit institutions and foreign bank branches applying the interest rates prescribed in Article 1 of this Circular shall be those who meet the borrowing conditions stipulated by the State Bank of Vietnam regarding the lending activities of credit institutions and foreign bank branches towards customers and are assessed by credit institutions and foreign bank branches as having transparent and sound financial situations.

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. Responsibilities of Borrowers

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

2. Credit institutions and foreign bank branches shall implement lending to the borrowers specified in this Circular in accordance with the laws governing lending activities, safety ratios in business operations of credit institutions and foreign bank branches, and other relevant laws; they shall not charge fees related to the loan from customers 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 the collection of fees for lending by credit institutions to customers.

Article 3. Responsibilities of Credit Institutions and Foreign Bank Branches

1. Credit institutions and foreign bank branches shall publicly display the interest rates for loans and the criteria for determining eligible borrowers as stipulated in Clause 2 of Article 1 and Clause 1 of Article 2 of this Circular.

1. This Circular takes effect from December 24, 2012 and replaces the following Circulars:

Article 4. Organization of Implementation

a) Circular No. 14/2012/TT-NHNN dated May 4, 2012 of the Governor of the State Bank of Vietnam stipulating the maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches for borrowers to meet capital needs serving certain economic sectors and industries.

b) Circular No. 20/2012/TT-NHNN dated June 8, 2012 of the Governor of the State Bank of Vietnam amending and supplementing some provisions of Circular No. 14/2012/TT-NHNN dated May 4, 2012 stipulating the maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches for borrowers to meet 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 in accordance with the signed credit contracts in compliance with the laws at the time of signing the contracts.

3. For loans outside the scope of this Circular, credit institutions and foreign bank branches 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 institutions to lend in Vietnamese dong to customers based on 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 the Board of Directors, Chairmen of the Board of Members and General Directors (Directors) of credit institutions and foreign bank branches, other organizations and individuals related to this Circular are responsible for its implementation./.

4. The Director of the Office, the Head of the Monetary Policy Department, and the Heads of other units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally governed cities; the Chairpersons of the Management Boards, the Chairpersons of the Board of Members, and the General Directors (Directors) of credit organizations, foreign bank branches, and other relevant entities and individuals shall be responsible for implementing this Circular./.