Last updated: Wednesday, March 29, 2017
Please let us about forms of raising capital of finance company?Posted: Wednesday, October 01, 2008
On 29th July 2008, the Government issued Decree No. 81/2008/ND-CP (“Decree 81”) on amending and supplementing a number of the articles of Decree No. 79/2002/ND-CP dated 4th October 2002 of the Government on organization and operation of Finance Companies (“Decree 79”). Accordingly, general finance company shall be permitted to raise capital from the following sources:
(i) Deposit for a term of from one year or more from organizations or individuals in accordance with the regulations of the State Bank;
(ii) Issuance of bonds, term deposit certificates and other valuable papers with a term of one year or more in accordance with the regulations of the State Bank;
(iii) Borrowing from domestic and overseas financial organizations, credit institutions and from international financial organizations;
(iv) Receipt of trustee capital of the Government, financial organizations.
Specialized financial company operating in the sector of consumer credit or in the sector of credit card shall not be permitted to raise capital as above – mentioned forms.
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