SBV Issues Bank Guarantee Regulation

The Second Governor of the State Bank of Vietnam Nguyen Dong Tien has signed a Decision No. 26/2006/QD-NHNN to issue the Bank Guarantee Regulation. Under this statute, credit organisations allowed to carry out guarantee profession are credit organisations set up and operated under the Credit Organisations Law and banks allowed by the State Bank. At the same time, clients of permitted credit organisations and banks are domestic and foreign organisations and individuals, except for managers, administrators and experts working for guarantees. 

 

The guarantee covers borrowing, payment, bidding, contract execution, product quality assurance, advanced money return, reciprocal capital, assurance confirmation and other fields that go in line with the law and conform to the international common practice. When carrying out the guaranteeing career, guarantees can pledge partially or wholly responsibilities in principal returns, borrowings on interests and other fees related to loan items.

The guarantees can take partial or whole responsibilities in payment for purchase of materials, commodities, machinery, equipment and other fees for their clients to implement investment, production, business or life-serving projects, and similar responsibilities in paying taxes and other financial duties to the State.