Quyết định 242/2000/QD-NHNN1

DECISION

ON THE ANNOUNCEMENT OF THE BASE INTEREST RATE AS A BASIS OF THE DETERMINATION BY CREDIT INSTITUTIONS OF THE LENDING INTEREST RATE IN VIETNAM DONG FOR CUSTOMERS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated 02 March, 1993 of the Government on the assignment, authority and responsibility for the State management of the ministries and ministry-level agencies;
Based on the direction of the Prime Minister stated in the Dispatch No. 322/VPCP-KTTH dated 25 July, 2000 of the Office of the Government on the operation of the interest rates;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1. To announce the base interest rate which is provided for in the Decision No. 241/2000/QD-NHNN1 dated 2 August, 2000 of the Governor of the State Bank on the change of operational mechanism of the lending interest rate of credit institutions for customers, to be of 0.75% per month.

Article 2. Credit institutions shall determine the lending interest rate for customers at the time of entering into credit contracts as a fixed lending rate or a floating lending rate which is not in excess of the base interest rate plus following bands:

1. For short-term lending: 0.3% per month;

2. For medium & long-term lending: 0.5% per month.

Article 3. Lending interest rates for customers determined by credit institutions plus other fees relating to the loans that are converted into a percentage shall not exceed the level of the base interest rate plus respective bands provided for in Article 2 of this Decision.

Article 4.

1. This Decision shall be effective from 5 August, 2000.

2. Following legal documents shall cease their effectiveness: The Decision No. 383/1999/QD-NHNN1 dated 22 October, 1999 of the Governor of the State Bank on the adjustment of the maximum interest rate in Vietnam Dong of credit institutions for customers; The Decision No. 328/1999/QD-NHNN1 dated 22 September, 1999 of the Governor of the State Bank of the collection of fees relating to the lending activity of credit institutions for customers; other documents in contrary to the provisions of this Decision.

3. Heads of units of the State Bank, General Manager of State Bank branches in provinces, cities; Chairman of the Board of Directors and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.