Công văn 1081/NHNN-CSTT

To: Commercial banks

As proposed by some commercial banks, State Bank of Vietnam would like to give out its opinion on giving interest rate support to the borrowers who have balance on deposit account as provided for at point b, paragraph 2 Article 1 of Circular No. 21/2009/TT-NHNN dated 09/10/2009 as follows:

1. Commercial bank shall calculate the total balance of deposit account in Vietnamese Dong and foreign currency and perform interest rate support to the loan outstanding minus (-) such balance of the deposit account of borrowers from lending commercial banks and other commercial banks at the time of signing credit facility. The borrowers shall be responsible for making report to the commercial bank of balance of their deposit account in VND, foreign currency at other credit institutions and be responsible for legality and accuracy of the report.

2. Balance of deposit account in VND, foreign currency of borrowers includes: demand deposit and time deposit, time savings deposit, demand savings deposit and other kinds of savings deposit; does not include balance of specialized deposit account, security deposit, frozen deposit in accordance with provisions of applicable laws. For balance of deposit account in foreign currency, it shall be converted into VND in accordance with the buying rate announced by the commercial bank at the time of determining balance of deposit account.

For example: On the first of July 2009, a customer signed loan contract with Bank A with amount of 100 billion dong in order to make investment in, trade in the economic industry, sector entitled to interest rate support; while customer’s balance of deposit account in VND and foreign currency (including demand and time deposit, demand savings deposit and other savings deposits) in Bank A was 20 billion VND, in Bank B was 15 billion dong and in Bank C was 15 billion dong… When the customer signed the credit contract with Bank A, at the time of signing the credit contract (01/7/2009), Bank A calculated the total balance of deposit account in VND and foreign currency of Bank A plus that of Bank B and Bank C as 50 billion VND, and interest rate support shall only be given to the loan outstanding of 100 billion dong minus 50 billion dong equaling to 50 billion dong.