ANNOUNCEMENT 24 Mar 2011In March 2011, the government of Vietnam announced a rule change for international private debt transactions.
NUMBER OF INTERVENTIONS
On 24 March 2011, the State Bank of Vietnam (SBV) issued Circular No.07/2011/TT-NHNN restricting foreign currency lending in Vietnam. Local and foreign banks are allowed to lend in foreign currency only for specific cases which include -
Further, to avail such loans, the borrowers will have to demonstrate that they will have sufficient foreign currency to repay these loans. For loans for all other purposes, an approval from SBV will be required.
This measure takes effect from 9 May 2011.