Tin Pháp lý
New regulations on lending activities of foreign credit organizations

15 February 2017

The State Bank of Viet Nam has issued Circular No.39/2016/TT-NHNN stipulating lending activities of foreign credit organizations and bank branches for customers.

Accordingly, lending activities of credit organizations for customers will be launched based on agreements between the credit organizations and customers suitable with the Circular mentioned above and related legal documents, including laws on environmental protection.
Customers receiving loans have to meet these requirements:

The customer, a legal entity with civil legal capacity, is aged 18 years or older or aged from 15 to 18 years without any civil legal capacity limitations.

Lending demands will be used for legal purposes with feasible capital using plan and financial capacity for paying debts.

The Circular defines credit organizations are not allowed to supply loans in these following cases:

- For realizing business and investment activities in which business investment is prohibited

- For paying and expenditures and meeting financial demands of transactions and activities prohibited by the laws

- For purchasing commodities and using services in fields of sectors prohibited by the laws

- For purchasing gold bars

- For paying debts from other credit organizations except loans for paying interest rates in process of construction works

- For paying debts from other credit organizations and foreign loans except meeting these conditions: a – loans serving for business activities, b – lending period does not exceed the lending period of the previous loan and c – unrealized loan is restructured repayment term

Credit organizations consider providing types of loans for customers: short-term loan with the maximum period of one year, medium-term loan with the period for one to five years and long-term loan with the period more than five years.

Credit organizations and customers agree on loans with Vietnamese Dong or foreign currencies suitable with regulations stipulated in the Circular and other relevant laws.

The Circular will take effect since March 15, 2017.

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