Decision No. 718/2001/QD-NHNN On changing the mechanism for managing interest rates on loans denominated in US dollars by credit institutions for customers

Pursuant to …; OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

||| Concerning the change in the mechanism for managing lending interest rates in US dollars for customers of credit institutions

- Office of the President of the State||| - Based on the Law on the State Bank of Vietnam and the Law on Credit Institutions dated December 12, 1997.

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 GOVERNOR OF THE STATE BANK OF VIETNAM

||| Credit institutions shall determine lending interest rates in US dollars based on international market interest rates and the supply and demand for foreign currency credit funds domestically.

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

- At the proposal of the Director of the Monetary Policy Department,

Pursuant to …;

Article 1.

1||| Abolish the provisions at Clause 1, Article 3 of Decision No. 241/2000/QĐ-NHNN1 dated August 2, 2000 of the Governor of the State Bank of Vietnam regarding the change in the mechanism for managing lending interest rates for customers of credit institutions and Decision No. 243/2000/QĐ-NHNN1 dated August 2, 2000 of the Governor of the State Bank of Vietnam regarding the announcement of the margin for US dollar lending interest rates as the basis for credit institutions to determine lending interest rates for customers.

2||| At the time this Decision takes effect, for outstanding loan balances already disbursed and credit contracts signed but not fully disbursed or not yet disbursed, they shall continue to be implemented according to the interest rate stipulated in the credit contract. The adjustment of lending interest rates for these credit contracts shall be negotiated between the credit institution and the customer.

Article 2.

1||| The overdue interest rate agreed upon in the credit contract between the credit institution and the customer shall not exceed 150% of the lending interest rate in US dollars stipulated in the credit contract.

2||| This Decision shall take effect from June 1, 2001.

Article 3.

1||| Heads of units under the State Bank of Vietnam, Governors of provincial and municipal branches of the State Bank of Vietnam, Boards of Directors and General Managers (Directors) of credit institutions are responsible for implementing this Decision.

2The heads of units under the State Bank, the Governors of provincial and municipal branches of the State Bank; the Boards of Directors and General Managers (Directors) of credit organizations are responsible for implementing this Decision.