Quyết định 09/2008/QD-NHNN

DECISION

ON THE LENDING IN FOREIGN CURRENCY BY CREDIT INSTITUTIONS TO BORROWERS BEING RESIDENTS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam in 1997 and the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam in 2003;
- Pursuant to the Law on Credit Institutions in 1997; the Law on the amendment, supplement of several Articles of the Law on Credit Institutions in 2004;
- Pursuant to the Ordinance on Foreign Exchange dated 13 December 2005;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for functions, assignments, authorities and organizational structure of the State Bank of Vietnam;
- Pursuant to Decree No. 160/2006/ND-CP dated 28 December 2006 of the Government providing in details for the implementation of the Ordinance on Foreign Exchange;
- Upon the proposal of the Director of Monetary Policy Department,

DECIDES:

Article 1. Credit institutions authorized to engage in foreign exchange activity shall be entitled to consider deciding the lending in foreign currency to residents for following funds requirements:

1. For making oversea payment of imported goods and services used for the production and business activity;

2. For payment of foreign loan prior to its maturity if that loan satisfies such conditions as: correct compliance with provisions on foreign borrowing and repayment in accordance with provisions of applicable laws on foreign exchange; borrowers are capable of making payment of principals and interests of loan funds in foreign currency, saving the cost of loan funds in comparison with the foreign borrowing.

3. For oversea direct investment in accordance with provisions of applicable laws on investment and guidance of the State Bank.

Article 2. Credit institutions are entitled to lend in foreign currency in accordance with this Decision and provisions of applicable laws on the lending and foreign exchange control and other provisions of related laws.

Article 3. Implementing provisions

1. This Decision shall be effective after 15 days since its publication in Official Gazette and replace the Decision No. 966/2003/QD-NHNN dated 22 August 2003 of the Governor of the State Bank of Vietnam on lending in foreign currency by credit institutions to borrowers being residents.

2. The Director of Administrative Department, Director of Monetary Policy Department and Heads of units of the State Bank of Vietnam, General Managers of the State Bank branches in provinces, cities under the central Government's management, the Chairman of Board of Directors, General Directors (Directors) shall be responsible for the implementation of this Decision.