Thông tư 08/2014/TT-NHNN

CIRCULAR

PROVIDING FOR INTEREST RATES APPLICABLE TO SHORT TERM LOANS IN VIETNAMESE DONG OF CREDIT INSTITUTIONS TO BORROWERS FOR MEETING DEMANDS OF CAPITAL FOR SEVERAL ECONOMIC INDUSTRIES AND SECTORS

- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;

- Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

- Pursuant to the Decree No. 156/2013/ND-CP dated 11 November 2013 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- In consideration of proposal of the Director of Monetary Policy Department;

The Governor of the State Bank hereby issues the Circular providing for interest rates applicable to short term loans in Vietnamese dong of credit institutions to borrowers for meeting demands of capital for several economic industries and sectors.

Article 1. Interest rate of short term loans in Vietnamese dong of credit institutions

1. Credit institutions, foreign bank's branches (hereinafter collectively referred to as credit institutions) shall fix their interest rate applicable to VND deposits of entities and individuals that is not higher than the maximum interest rate as announced by the Governor of the State Bank from time to time and to specific type of credit institutions.

2. Short term loans in Vietnamese dong to which maximum interest rate are applied as provided for in Clause 1 of this Article shall be loans for meeting following demands of capital:

a. For serving the development of agricultural and rural areas in accordance with provisions of the Decree No. 41/2010/ND-CP dated 12 April 2010 of the Government on credit policies for agricultural and rural development;

b. For realizing plans, projects of production, business of goods for export in accordance with provisions of the Commercial Law;

c. For serving the production, business of small and medium enterprises in accordance with provisions of the Decree No. 56/2009/ND-CP dated 30 June 2009 of the Government on giving support to the development of small and medium enterprises;

d. For developing support industry in accordance with provisions of the Decision No. 12/2011/QD-TTg dated 24 February 2011 of the Prime Minister on policies for the development of some support industries;

dd. For serving the production – business of high-tech application firms under the Law on High technologies and provisions of related laws.

Article 2. Responsibilities of the borrowers

1. Borrowers of credit institutions, foreign bank’s branches who are applied with the interest rate as stipulated in Clause 1 Article 1 of this Circular shall be customers who are eligible for obtaining loans in line with provisions of the State Bank of Vietnam on lending by credit institutions to customers and whose financial position is considered transparent and healthy by the credit institution, foreign bank’ branch.

2. Borrowers shall be responsible for supply of information, documents to prove that their borrowing purpose is subject to the industries, sectors that are entitled to loan interest rates as provided for in this Circular and be responsible to the law for the truthfulness and accuracy of the supplied information, documents.

Article 3. Responsibilities of credit institutions

1. Credit institutions, foreign bank’s branches shall post in public their loan interest rates; criteria for defining borrowers in line with provisions in Clause 2 Article 1 and Clause 1 Article 2 of this Circular.

2. Credit institutions, foreign bank’s branches shall provide loans to customers as stipulated in this Circular in accordance with provisions of laws on lending activities, prudential ratios in business activities of credit institutions and other provisions of related laws; it is prohibited from collecting any fee in association with the loans to the customers, except for those as provided for in the Circular No. 05/2011/TT-NHNN dated 10 March 2011 of the Governor of the State Bank providing for the collection of loan fees by credit institutions from customers.

Article 4. Implementation organization

1. This Circular shall come into effect from 18 March 2014 and replace the Circular No. 16/2013/TT-NHNN dated 27 June 2013 of the Governor of the State Bank providing for maximum interest rate applicable to short term loans in Vietnamese dong of credit institutions, foreign bank’s branches to borrowers for meeting demands of capital for several economic industries and sectors.

2. Loan interest rate applicable to credit contracts that are signed before the effectiveness of this Circular shall continue to be implemented according to the signed credit contracts in conformity with provisions of laws applicable at the time where the contracts are entered into.

3. For loans that are not covered by this Circular, credit institutions, foreign bank’s branches shall implement in accordance with provisions at the Circular No. 12/2010/TT-NHNN dated 14 April 2010 of the Governor of the State Bank on guiding the lending in Vietnamese dong by credit institutions to customers at agreed interest rate.

4. The Director of State Bank’s Office, Director of Monetary Policy Department and Heads of units of the State Bank of Vietnam, General Manager of State Bank’s branches in provinces, cities under the central Government’s management; Chairman of Board of Directors, Chairman of Board of Members and General Director (Director) of credit institutions, foreign bank’s branches shall be responsible for implementation of this Circular.