LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 11/2022)
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.”
v Name of
legal document: Decision No. 1826/QD-NHNN issued on 26/10/2022 by the Governor of the State Bank of Vietnam on the refinancing rate, rediscount
rate, overnight rate for inter-bank
electronic payment, and interest rate for (referred to as the “Decision No. 1826/QD-NHNN”).
v
Effective date: 15/11/2022.
The content should be noted: The list of administrative procedures which are performed at the State Bank of Vietnam and branches of the State Bank in provinces, cities under central have been amended and supplemented subject to the management functions of the State Bank.
Specifically, Item A, Section 1,
Part I of administrative procedures to amend and supplement in the field of
foreign exchange activities subject to
the management function of the State Bank of Vietnam promulgated together with
Decision No. 1826/QD-NHNN stipulates:
“ADMINISTRATIVE PROCEDURES TO AMEND AND SUPPLEMENT IN THE FIELD
OF FOREIGN EXCHANGE ACTIVITIES SUBJECT TO THE MANAGEMENT FUNCTION OF THE STATE
BANK OF VIETNAM
(Promulgated together with
Decision No. 1826/QD-NHNN dated October 26, 2022 of the Governor of the State
Bank of Vietnam)
PART I.
LIST OF ADMINISTRATIVE PROCEDURES
1. The list of
administrative procedures have been amended and supplemented subject to the
management functions of the State Bank
|
No. |
Case number of administrative procedure |
Name of administrative procedure |
The name of the legal document stipulating the content
of amendments and supplements |
Field |
Implementing agency |
|
A. Administrative procedures which are performed at the State Bank of Vietnam
and branches of the State Bank in provinces, cities under central |
|||||
|
1 |
1.000122 |
Procedures for registering an account to access the
Website for management of foreign loans and repayments that are not
guaranteed by the Government |
Circular No. 12/2022/TT-NHNN
dated on September 30, 2022 on guidelines for foreign
exchange administration in respect of enterprise’s foreign borrowing and
foreign debt repayment of enterprises |
Foreign
exchange activities |
State Bank of Vietnam (Foreign Exchange Management
Department); branches of the State Bank in provinces, cities under central |
|
2 |
1.000972 |
Procedures for registration of foreign loans of
enterprises that are not guaranteed by the Government |
Circular No. 12/2022/TT-NHNN
dated on September 30, 2022 on guidelines for foreign exchange administration
in respect of enterprise’s foreign borrowing and foreign debt repayment of
enterprises |
Foreign
exchange activities |
State Bank of Vietnam (Foreign Exchange Management
Department); branches of the State Bank in provinces, cities under central |
|
3 |
1.000111 |
Procedures for registration of changes in foreign loans
of enterprises that are not guaranteed by the Government |
Circular No. 12/2022/TT-NHNN
dated on September 30, 2022 on guidelines for foreign exchange administration
in respect of enterprise’s foreign borrowing and foreign debt repayment of
enterprises |
Foreign
exchange activities |
State Bank of Vietnam (Foreign Exchange Management
Department); branches of the State Bank in provinces, cities under central |
”
v Name of
legal document: Decision No. 1809/QD-NHNN issued on 24/09/2022 by the Governor of State
Bank of Vietnam on the refinancing
rate, rediscount rate, overnight rate for inter-bank electronic payment, and
interest rate for loans for covering the capital shortfall regarding clearing
of the State bank of Vietnam for credit institutions and branches of foreign
banks (referred to as the “Decision No. 1809/QD-NHNN”).
v
Effective date: 25/10/2022.
The content should be noted:
·
Firstly, stipulating
on interest rates of the State Bank of Vietnam.
Specifically, Article 1 of
Decision No. 1809/QD-NHNN stipulates: “Article 1. Regulations on
interest rates of the State Bank of Vietnam are as follows:
1. Refinancing rate:
6,0%/year.
2. Rediscount rate: 4,5%/year.
3. Overnight rate for
inter-bank electronic payment and interest rate for loans for covering the
capital shortfall regarding clearing of the State Bank of Vietnam for credit
institutions and foreign bank branches: 7,0%/year.”
·
Secondly, stipulating on
the effective time of Decision No. 1809/QD-NHNN.
Specifically, Article 2 of
Decision No. 1809/QD-NHNN stipulates: “Article 2. This Decision
comes into force from October 25, 2022 and replaces Decision
No. 1606/QD-NHNN dated September 22, 2022 of the Governor of the
State bank of Vietnam on the refinancing rate, rediscount rate, overnight rate
for inter-bank electronic payment, and interest rate for loans for covering the
capital shortfall regarding clearing of the State Bank of Vietnam for credit institutions
and foreign bank branches.”
v Name of
legal document: Decision No. 1812/QD-NHNN issued on 24/10/2022 by the 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 (referred to as the “Decision
No. 1812/QD-NHNN”).
v
Effective date: 25/10/2022.
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. 1812/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 1,0%/year.
2. The maximum interest rate
applicable to term deposits from 1 month to less than 6 months is 6,0%/year;
except People's Credit Funds and microfinance institutions, which shall apply
the maximum interest rate of 6,5%/year with respect to term deposits from 1
month to less than 6 months.”
·
Secondly, stipulating on
the effective time of Decision No. 1812/QD-NHNN.
Specifically, Article 2 of
Decision No. 1812/QD-NHNN stipulates: “Article 2.
1. This Decision comes into
force from September 25, 2022 and replaces Decision
No. 1607/QD-NHNN dated September 22, 2022 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.”
v Name of
legal document: Decision No. 1813/QD-NHNN issued on 24/10/2022 by the Governor
of State Bank of Vietnam on the maximum short-term loan interest rate in Vietnam
dong of credit institutions and foreign bank branches for borrowers to satisfy
the capital requirements for certain economic fields and sectors according to Circular
No. 39/2016/TT-NHNN dated December 30, 2016 (referred to as the “Decision
No. 1813/QD-NHNN”).
v
Effective date: 25/10/2022.
The content should be noted:
·
Firstly, stipulating
on the maximum short-term loan interest rates in Vietnam dong
according to clause 2 Article 13 of Circular No. 39/2016/TT-NHNN dated December 30, 2016.
Specifically, Article 1 of
Decision No. 1813/QD-NHNN stipulates: “Article 1. The maximum
short-term loan interest rates in Vietnam dong according to clause 2 Article 13[1]
of Circular No. 39/2016/TT-NHNN dated December 30, 2016 are as
follows:
1. Credit institutions
and foreign bank branches (except for People's Credit Funds and microfinance
institutions) shall apply a maximum short-term loan interest rate of 5,5% per
year.
2. People's Credit Funds
and microfinance institutions shall apply a maximum short-term loan interest
rate in Vietnam Dong of 6,5% per year.”
·
Secondly, stipulating on
the effective time of Decision No. 1813/QD-NHNN.
Specifically, Article 2 of
Decision No. 1813/QD-NHNN stipulates: “Article 2.
[1] Clause
2 Article 13[1] of Circular
No. 39/2016/TT-NHNN dated December 30, 2016 stipualates: “Article 13. Loan interest rate …2. A credit
institution and customer shall agree on the interest rate on short-term loan
denominated in Vietnamese dong but shall not allow it to exceed the maximum
interest rate decided by the State Bank’s Governor over periods of time in
order to meet certain demands for borrowed fund as follows: a) Loans taken out
to support the agricultural and rural development sector under regulations of the
Government on credit policies for agricultural and urban development; b) Loans
taken out to implement the export business plan in accordance with the Law on
Commerce and other instructional directives thereof; c) Loans taken out to
finance business activities of small and medium-sized enterprises under the
Government’s regulations on support for development of small and medium-sized
enterprises; d) Loans taken out to develop ancillary industries under the
Government’s regulations on development of ancillary industries; dd) Loans
taken out to finance business operations of high technology application
enterprises under the provisions of the Law on High Technology and other
instructional directives thereof.”
