v Name of
legal document: Decision No. 1606/QD-NHNN issued on 22/09/2022
by the State Bank of Vietnam on the refinancing interest rate, rediscounting
interest rate, overnight lending interest rate in inter-bank electronic payment
and lending to offset the capital shortage in the clearing of the State Bank of
Vietnam for credit institutions, foreign bank branches (referred to as the “Decision
No. 1606/QD-NHNN”).
v Effective
date: 23/09/2022.
The
content should be noted:
·
Firstly, stipulating
on interest rates of the State Bank of Vietnam.
Specifically,
Article 1 of Decision No. 1606/QD-NHNN stipulates: “Article 1. Regulations
on interest rates of the State Bank of Vietnam are as follows:
1.
Refinancing interest rate: 5.0%/year.
2.
Rediscounting interest rate: 3.5%/year.
3.
overnight lending interest rate in inter-bank electronic payment and lending to
offset the capital shortage in the clearing of the State Bank of Vietnam for
credit institutions, foreign bank branches: 6.0%/year.
·
Secondly, stipulating on
the effective time of Decision No. 1606/QD-NHNN.
Specifically,
Article 2 of Decision No. 1606/QD-NHNN stipulates: “Article 2. This
Decision takes effect from September 23, 2022 and replaces Decision No.
1728/QD-NHNN dated September 30, 2020 of the Governor of the State Bank
refinancing interest rate, rediscounting interest rate, overnight lending
interest rate in inter-bank electronic payment and lending to offset the
capital shortage in the clearing of the State Bank of Vietnam for banks.”
v Name of
legal document: Decision No. 1607/QD-NHNN issued on 22/09/2022
by the State Bank of Vietnam maximum interest rates of deposits in Vietnam dong
of organizations and individuals at credit institutions and foreign bank
branches according to Circular No. 07/2014/TT-NHNN dated
March 17, 2014 (referred to as the “Decision No.
1607/QD-NHNN”).
v Effective
date: 23/09/2022.
The
content should be noted:
·
Firstly, stipulating
on maximum interest rates of deposits in Vietnam dong of organizations and
individuals at credit institutions and branches of foreign banks according to
circular No. 07/2014/TT-NHNN dated
March 17, 2014.
Specifically,
Article 1 of Decision No. 1607/QD-NHNN stipulates: “Article 1. Maximum
interest rates of deposits in Vietnam Dong of organizations (except credit
institutions and foreign bank branches) and individuals at credit institutions
and branches of foreign banks according to circular
No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:
1. The
maximum interest rate applicable to demand deposits and term deposits under 1
month is 0.5%/year.
2. The
maximum interest rate applicable to term deposit from 1 month to less than 6
months is 5.0%/year; in particular, People’s Credit Funds and microfinance
institutions shall adopt the maximum interest rate of 5.5%/year with respect to
term deposit from 1 month to less than 6 months.”
·
Secondly, stipulating on
the effective time of Decision No. 1607/QD-NHNN.
Specifically,
Article 2 of Decision No. 1607/QD-NHNN stipulates: “Article 2.
1. This
Decision comes into force from September 23, 2022 and replaces Decision
No. 1729/QD-NHNN dated September 30, 2020 of Governor of State Bank
of Vietnam on maximum interest rates of deposits in Vietnam Dong of
organizations and individuals at credit institutions and foreign bank branches
according to Circular No. 07/2014/TT-NHNN dated March 17, 2014.
2. With
respect to interest rates of term deposit in Vietnam Dong of organizations and
individuals at credit institutions and foreign bank branches made before the
effective date hereof, the interest rates shall continue to be applied for the
whole period; in case the agreed period is expired and organizations and
individuals do not withdraw the deposits, the credit institutions and foreign
bank branches shall adopt interest rates of deposits as specified in this
Decision.”\
1.3.
Circular No. 11/2022/TT-NHNN regulating
on bank guarantee
v Name of
legal document: Circular No. 11/2022/TT-NHNN issued
on 30/09/2022 by the State Bank of Vietnam regulating on bank guarantee (referred
to as the “Circular No. 11/2022/TT-NHNN”).
v
Effective date: 01/04/2023.
The content should be noted:
·
Firstly, stipulating
on cases of non-guarantee, guarantee restriction and implementation of credit
limit
Specifically, Article 5 of
Circular No. 11/2022/TT-NHNN stipulates: “Article 5. Cases of non-guarantee,
guarantee restriction and implementation of credit limit
When making guarantees,
credit institutions and foreign bank branches must comply with the provisions
of the Law on Credit Institutions and the guidance of the State Bank of Vietnam
(hereinafter referred to as the State Bank) about the cases of not being
granted credit, restrict credit granting, limiting credit granting.”
·
Secondly, stipulating
on requirements for customers.
Specifically, Article 11 of
Circular No. 11/2022/TT-NHNN stipulates: “Article 11. Requirements for
customers
1. Credit institutions,
foreign bank branches shall consider and decide to grant guarantees, reciprocal
guarantees, and confirm guarantees for customers when customers satisfy the
following requirements:
a) Having full civil legal
capacity and civil act capacity as prescribed by law;
b) The guaranteed obligation
is a lawful financial obligation;
c) Being assessed by the
credit institution, foreign bank's branch with guarantee to be able to repay
the amount that the credit institution or foreign bank branch has to pay on
behalf of when performing the guarantee obligation.
2. Credit institutions,
foreign bank branches are not allowed to guarantee for the bond payment
obligations of the issuing enterprises for the purposes of: restructuring the
debts of the issuing enterprises themselves; contribute capital, buy shares in
other enterprises and increase the scale of operating capital.”
v Name of
legal document: Circular No. 12/2022/TT-NHNN issued
on 30/09/2022 by the State Bank of Vietnam guidelines on foreign exchange
management for foreign loans and foreign debt repayment of enterprise (referred
to as the “Circular No. 12/2022/TT-NHNN”).
v
Effective date: 15/11/2023.
The content should be noted: Stipulating on monitoring foreign borrowing
and repayment of borrowers being commercial banks or foreign bank branches
Specifically, Article 27 of
Circular No. 12/2022/TT-NHNN stipulates: “Article 27. Monitoring foreign
borrowing and repayment of borrowers being commercial banks or foreign bank
branches
1. Commercial banks, foreign bank branches that are borrowers are not required to open and use foreign loan and debt repayment accounts at a credit institution or foreign bank branch to make the foreign loans.
2. Commercial banks, foreign bank branches being borrowers are responsible for monitoring their transactions related to foreign loans in strict accordance with current regulations on accounting and bookkeeping for commercial banks, foreign bank branches; be responsible for and ensure the implementation of transactions related to foreign loans in accordance with the contents of the State Bank's document certifying the registration and registration of changes to foreign loans of the commercial bank orforeign bank branches.”
