Decision No. 418/2000/QĐ-NHNN7 On the Borrowers Eligible for Foreign Currency Loans from Credit Institutions

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

On the objects eligible for foreign currency loans from Credit Institutions

GOVERNOR OF THE STATE BANK OF VIETNAM

BASED ON THE LAW ON THE STATE BANK OF VIETNAM AND THE LAW ON CREDIT ORGANIZATIONS dated December 12, 1997;

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

Pursuant to Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management;

Pursuant to the guidance of the Prime Minister in Document No. 1918/VPCP dated May 17, 2000 of the Government Office regarding the expansion of objects eligible for domestic foreign currency loans;

The General Directors (Directors) of credit institutions permitted to operate in foreign currencies are authorized to set the buying rate and selling rate for immediate transactions (SPOT) of Vietnamese Dong against foreign currencies according to the following principles:

DECIDES;

Article 1. -Credit institutions permitted to engage in foreign exchange operations (hereinafter referred to as Credit institutions) may grant foreign currency loans to resident customers for the following purposes:

1- To pay for imports of goods and services serving the production and business activities of the customer.

2- For investment projects as decided.

3- For production and trading projects exporting goods with export markets.

4- In the form of discounting export documents.

5- To repay foreign debt ahead of schedule if the foreign loan has been guaranteed by a domestic Credit institution and meets the following conditions: The investment project, production and business plan, or service using this loan is being implemented effectively; the loan falls within the repayment period; the enterprise has the ability to repay; repaying foreign debt ahead of schedule achieves more favorable loan conditions or saves costs compared to foreign borrowing.

6- For workers going abroad for a limited time according to the regulations of the State Bank.

Article 2. -Foreign currency loans used by customers to settle transactions with foreign countries (paying for imported goods and services serving production and business activities, meeting the financial needs of workers going abroad for a limited time, and repaying foreign debt), if used domestically, must be resold back to the Credit institution granting the loan in accordance with the objectives and foreign exchange management regulations.

Article 3. -When granting loans to the objects specified in Article 1 of this Decision, Credit institutions must comply with the provisions of the Loan Regulations for Customers issued together with Decision No. 284/2000/QĐ-NHNN1 dated August 25, 2000 of the Governor of the State Bank and the foreign exchange management regulations.

Article 4. -Based on the provisions of this Decision, the Loan Regulations for Customers issued together with Decision No. 284/2000/QĐ-NHNN1 dated August 25, 2000 of the Governor of the State Bank, and based on their own foreign currency capital, Credit institutions shall issue specific guidelines on lending to the aforementioned objects in accordance with their conditions, characteristics, and Charter.

Article 5. -Granting foreign currency loans to objects other than those specified in Article 1 of this Decision must be approved in writing by the Governor of the State Bank.

Article 6. -This Decision takes effect fifteen days after its issuance and replaces any relevant regulations of the State Bank of Vietnam that conflict with this Decision.

Article 7. -The heads of units under the State Bank, the Governors of provincial branches of the State Bank directly under the central government; Chairmen of the Board of Directors and General Managers (Directors) of Credit institutions and customers borrowing from Credit institutions are responsible for implementing this Decision./.