Decision No. 993/2001/QD-NHNN On the level of unsecured loans for state-owned commercial banks, foreign bank branches in Vietnam, finance companies within state corporations, and the Poor People's Service Bank.

Pursuant to …;

Regarding the provision on the level of unsecured loans for state-owned commercial banks,

foreign bank branches in Vietnam, financial companies within

state-owned corporations, and the Poor People's Service Bank

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to 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 February 3, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

Pursuant to Clause 2, Article 21 of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on the guarantee of credit funds of credit organizations;

Pursuant to the proposal of the Director of the Monetary Policy Department,

DECISION:

Article 1.

1.The Board of Directors of the Vietnam Agricultural Bank, the Vietnam Industrial and Commercial Bank, the Vietnam Foreign Trade Bank, the Vietnam Investment and Development Bank, and the Mekong Delta Development Bank (hereinafter referred to as state-owned commercial banks); the General Director (Director) of financial companies within state-owned corporations; the General Director of foreign bank branches in Vietnam shall determine the level of unsecured loan debt to customers and be responsible for their decisions.

2.The Poor People's Service Bank shall provide unsecured loans to poor individuals and households without collateral according to Decision No. 525/TTg dated August 31, 1995 of the Prime Minister on the establishment of the Poor People's Service Bank or provide loans with guarantees from credit commitments by political-social organizations at the grassroots level according to Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on the guarantee of credit funds of credit organizations and Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank guiding the implementation of this Decree.

Article 2.

1.The level of unsecured loan debt of credit organizations as stipulated in Clause 1, Article 1 of this Decisionshall be calculated based on the total loan debt of that credit organization, excluding:

a.Loan debt without collateral as designated by the Government;

b.Loan debt without collateral for assets for objects according to Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on certain credit policies of banking services for agricultural and rural development; loan debt up to 20 million VND not required to implement collateral measures for farmer households, farm owners engaged in agricultural, forestry, and aquaculture production as specified in Point 4, Section I of Circular No. 10/2000/TT-NHNN1 dated August 31, 2000 of the Governor of the State Bank guiding the implementation of solutions regarding the guarantee of credit funds of credit organizations according to Resolution No. 11/2000/NQ-CP dated July 31, 2000 of the Government on certain measures to manage economic and social development plans in the last six months of 2000.

c.Loan debt under 50 million VND not required to mortgage assets for organizations, household families, and individuals for breeding aquatic species as specified in Point 2, Article 4 of Decision No. 103/2000/QĐ-TTg dated August 25, 2000 of the Prime Minister on certain policies to encourage the development of aquatic species.

2.The level of unsecured loan debt of credit organizations as stipulated in Clause 1, Article 1 of this Decision shall only apply to credit contracts established from April 19, 2000.

Article 3. State-owned commercial banks, foreign bank branches in Vietnam, and financial companies within state-owned corporations shall decide and implement unsecured loans to borrowers based on ensuring the safety of credit operations, complying with regulations on unsecured loans in Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on the guarantee of credit funds of credit organizations, Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank guiding the implementation of this Decree, and other relevant legal documents.

Article 4. Implementation Provisions

1.This Decision takes effect from the date of signature and replaces Decision No. 107/2000/QĐ-NHNN1 dated April 4, 2000 of the Governor of the State Bank.

2.The Chief Inspector of the State Bank shall be responsible for inspecting and supervising the implementation of this Decision.

3.The heads of units under the State Bank, the Directors of provincial and centrally-administered city branches of the State Bank; the Boards of Directors, General Directors (Directors) of state-owned commercial banks, foreign bank branches in Vietnam, financial companies within state-owned corporations, and the Poor People's Service Bank shall be responsible for implementing this Decision.

4.Any amendments or supplements to this Decision shall be decided by the Governor of the State Bank.