Decision No. 39/1998/QĐ-NHNN1 stipulates interest rates for loans in Vietnamese dong provided by credit institutions to economic organizations and residents, and the interest rate level for dollar deposits by economic organizations.

Pursuant to …;

Article 24Prescribing interest rates for loans in Vietnamese dong by credit organizations to economic organizations, residents, and the ceiling on interest rates for dollar deposits by economic organizations.

Credit organizations to economic organizations and residents. standards

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

At the proposal of the Director of the Economic Research Department;

DECISION:

Article 1. Interest rates for loans in Vietnamese dong by credit organizations to economic organizations and residents are prescribed as follows:

1. Ceiling on interest rates for loans:

1.1. Short-term loans: 1.2% per month

1.2. Medium-term and long-term loans: 1.25% per month The ceiling on interest rates for loans in Vietnamese dong mentioned above shall apply to both urban and rural areas for loans arising from January 21, 1998. The outstanding balance of short-term, medium-term, and long-term loans as of January 20, 1998, shall continue to be implemented according to the interest rate stipulated in the loan agreement (loan contract).

2. Preferential interest rates shall continue to be implemented according to current regulations, specifically as follows:

2.1. Banks serving the poor lending to poor households: 0.8% per month.

2.2. Loans for recovery and development of production pursuant to Decision No. 985/TTg dated November 20, 1997 of the Prime Minister on measures to mitigate the aftermath of Typhoon No. 5 affecting coastal provinces in southern and central Vietnam:

Short-term loans: 0.50% per month

Medium-term and long-term loans: 0.60% per month

2.3. Loans to economic organizations and residents in highland areas (Zone 3 as defined in Circular No. 41/UB-TT dated January 8, 1996 on criteria for classifying mountainous regions and Decision No. 42/UB-QĐ dated May 23, 1997 on recognizing the list of three mountainous and highland zones of the Ethnic Minorities Commission and the Mountainous Areas Commission), islands, and areas with concentrated Khmer populations shall have interest rates reduced by 30% compared to the general loan interest rates.

2.4. Loans to students at universities, colleges, vocational schools, and technical training institutions: 0.70% per month.

3. Interest rates for loans by Credit Cooperatives and People's Credit Funds to members shall still be implemented according to the ceiling on interest rates prescribed in Point 1.3, Clause 1, Article 1 of Decision No. 197/QĐ-NH1 dated June 28, 1997 of the Governor of the State Bank regarding adjustments to interest rates for loans in Vietnamese dong and US dollars by credit organizations to economic organizations and residents.

4. Overdue interest rates shall be 150% of the ceiling on interest rates for loans of the same type; for preferential loans, overdue interest rates shall be 150% of the interest rate stipulated in the loan agreement (loan contract).

Article 2. - Prescribing interest rates for dollar deposits by economic organizations at credit organizations as follows:

Unfixed term deposits maximum: 1.50% per year Fixed term deposits up to six months maximum: 4.00% per year Fixed term deposits over six months maximum: 4.50% per year.

Article 3. - Chairmen of the Board of Directors and General Directors (Directors) of State-owned Commercial Banks, Investment and Development Banks, Joint Stock Commercial Banks, Joint Ventures, Branches of Foreign Banks in Vietnam, Financial Companies, People's Credit Funds, Banks Serving the Poor, and Heads of Credit Cooperatives shall base their specific interest rates for deposits and loans on the ceilings on interest rates for loans and interest rates for dollar deposits by economic organizations set forth in this Decision and the remaining effective provisions of Decision No. 197/QĐ-NH1 dated June 28, 1997 of the Governor of the State Bank.

Article 4. - This Decision shall take effect from January 21, 1998. The ceilings on interest rates for loans in Vietnamese dong prescribed in Points 1.1, 1.2, and 1.3 of Clause 1, Article 1 of the Governor's Decision No. 197/QĐ-NH1 dated June 28, 1997 shall cease to be effective (except for the ceilings on interest rates for loans by Credit Cooperatives and People's Credit Funds to members).

Article 5. - The Governor's Chief of Staff, Heads of Units under the Central State Bank, Chairmen of the Board of Directors and General Directors (Directors) of State-owned Commercial Banks, Investment and Development Banks, Joint Stock Commercial Banks, Joint Ventures, Branches of Foreign Banks in Vietnam, Financial Companies, People's Credit Funds, Banks Serving the Poor, Heads of Credit Cooperatives, and Directors of Provincial and Municipal State Bank Branches shall be responsible for implementing this Decision./.