Quyết định 266/1999/QD-NHNN1

DECISION

READJUSTING THE CEILING INTEREST RATES ON CREDIT INSTITUTIONS’ VIETNAM DONG LOANS PROVIDED TO CLIENTS

THE STATE BANK GOVERNOR

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions of December 12, 1997;
Pursuant to Decree No. 15/CP of February 3, 1993 of the Government on the tasks, powers and the State management responsibility of the ministries and ministerial-level agencies;
At the proposal of the Director of Monetary Policies Department,

DECIDES:

Article 1.-

1. To stipulate the ceiling interest rates on Vietnam dong loans lent by credit institutions to their clients to be 1.05% per month.

Particularly the ceiling lending interest rates of the rural commercial stock banks, the grassroots people’s credit funds and credit cooperatives for their members still comply with the regulations in Decision No. 189/1999/QD-NHNN1 of May 29, 1999 of the State Bank Governor prescribing the ceiling lending interest rates of credit institutions applicable to their clients.

2. The lending interest rates for Mountainous Region 3 (the Mountainous Region 3 as stipulated in Decision No. 42/UB-QD of May 23, 1997 of the Commission for Ethnic Minorities and Mountainous Areas recognizing the lists of 3 mountainous and highland regions), offshore islands and regions inhabited concentratedly by people of Khmer minorities shall be cut by 30% as compared to the lending interest rates of the same kind.

3. The preferential lending interest rate shall continue to comply with the current regulations of the State Bank Governor.

4. The overdue debt interest rate shall be agreed upon in the credit contracts between credit institutions and their clients, but must not exceed 150% of the interest rate of the same kind written in the credit contracts.

Article 2.- The ceiling lending interest rates stipulated in this Decision takes effect as from August 1, 1999. The earlier regulations on the ceiling interest rates on Vietnam dong loans which are contrary to this Decision shall be no longer effective.

Article 3.- The credit institutions shall base themselves on the ceiling lending interest rates stipulated in Clause 1, Article 1 of this Decision to set the specific deposit and loan interest rates suitable to their own operating conditions.

For the debt balance and credit contracts with loans having not been fully disbursed or had not been disbursed by July 31, 1999, the interest rates agreed upon between the credit institutions and their clients in the credit contracts shall continue to apply. The consideration for reduction of the interest rates on these loans according to the new ceiling interest rates shall be decided by General Directors (Directors) of the credit institutions.

Article 4.- The heads of the units under the Central State Bank, directors of the State Bank’s provincial/municipal branches, chairmen of the management boards and general directors (directors) of the credit institutions and their clients shall have to implement this Decision.