Amending the stipulation on grant of foreign currency loans to residents by credit institutions and branches of foreign banks
16:13 10/01/2017
The State bank of Vietnam issued Circular No: 31/2016/TT-NHNN dated November 15, 2016 amending and supplementing a number of articles of Circular No.24/2015/TT-NHNN.
Earlier, the State bank of Vietnam issued Circular No.24/2015/TT-NHNN dated December 8, 2015 on grant of foreign currency loans to residents by credit institutions and branches of foreign banks by the Governor of the State bank of Vietnam.
Credit institutions shall consider granting the foreign currency loans serving Short-term loans granted to meet domestic enterprises’ demands for short-term capital to serve the purpose of implementing their plans to manufacture and/or trade goods exported through Vietnam’s border checkpoints when borrowers’ foreign currency derived from the export turnover is sufficient to repay such loans; on receipt of loans disbursed by credit institutions, borrowers shall sell such borrowed foreign currency to the lending credit institutions in the form of a foreign-exchange spot transaction, unless the loans borrowers are used by the borrowers to make payments in which foreign currency is compulsory as stipulated by laws. However, this stipulation was effective till the end of March 31, 2016.
According the new Circular, this provision was amended and lengthened the effective date until December 31, 207. Another amendment is the new form replacing form No.2 issued together with Circular No.24/2015/TT-NHNN.
This Circular enters into force from January 01, 2017 and the Circular No. 07/2016/TT-NHNN dated May 27, 2016 by the Governor of the State Bank on amendment and supplement to a number of Articles of the Circular No.24/2015/TT-NHNN on grant of foreign currency loans to residents by credit institutions and branches of foreign banks dated December 08, 2015 by the Governor of the State Bank of Vietnam shall be null and void from the effective date of this Circular.
Credit institutions shall consider granting the foreign currency loans serving Short-term loans granted to meet domestic enterprises’ demands for short-term capital to serve the purpose of implementing their plans to manufacture and/or trade goods exported through Vietnam’s border checkpoints when borrowers’ foreign currency derived from the export turnover is sufficient to repay such loans; on receipt of loans disbursed by credit institutions, borrowers shall sell such borrowed foreign currency to the lending credit institutions in the form of a foreign-exchange spot transaction, unless the loans borrowers are used by the borrowers to make payments in which foreign currency is compulsory as stipulated by laws. However, this stipulation was effective till the end of March 31, 2016.
According the new Circular, this provision was amended and lengthened the effective date until December 31, 207. Another amendment is the new form replacing form No.2 issued together with Circular No.24/2015/TT-NHNN.
This Circular enters into force from January 01, 2017 and the Circular No. 07/2016/TT-NHNN dated May 27, 2016 by the Governor of the State Bank on amendment and supplement to a number of Articles of the Circular No.24/2015/TT-NHNN on grant of foreign currency loans to residents by credit institutions and branches of foreign banks dated December 08, 2015 by the Governor of the State Bank of Vietnam shall be null and void from the effective date of this Circular.