Foreign Banks Not Allowed for Syndicated Credit

The State Bank of Vietnam (SBV) issued the Circular No. 42/2011/TT-NHNN on December 15, 2011 to guide syndicated credit extension by credit institutions for clients.

 

Syndicated credit will be extended on the basis of the voluntary lenders in the principle of collective appraisal, decision and accountability.

 

Members of syndicated credit can function as syndicated credit arrangers, payment members and guaranteed asset receiving members. However, foreign credit institutions are not allowed to be syndicated credit arrangers, payment members and guaranteed asset receiving members.

 

The forms of the syndicated credit extension include syndicated loans, syndicated guaranty, syndicated discounting, syndicated leasing, syndicated factoring, and others.