SBV Issues Regulations on Foreign Currency Lending by Resident Borrowers

The State Bank of Vietnam (SBV) has recently issued the Circular No. 07/2011/TT-NHNN dated March 24, 2011 on foreign currency lending by credit institutions for resident borrowers.

 

Accordingly, credit institutions with forex service license should decide to provide resident borrowers with foreign currency loans of various terms for following purposes: short, medium and long-term loans for overseas payment of goods and service importation for those customers who are able to make repayment by their foreign exchange revenue in written commitment; short-term loans to carry out plans of production and trading of exported products through border points for those borrowers who are able to make repayment by their exporting revenue; in cases where those customers who borrow foreign currencies for domestic use must sell the total amount of foreign currencies to the lenders under spot contracts; and foreign currency loans for other demands should be approved in writing by the SBV Governor.

 

This circular will effect on May 9, 2011 and replace some other regulations. For those credit contracts signed before the effective date of this Circular, credit institutions and borrowers shall implement the signed credit contracts in accordance with the applicable regulations at the signing date.