ANNOUNCEMENT 28 Dec 2012In December 2012, the government of Vietnam announced a rule change for international private debt transactions.
NUMBER OF INTERVENTIONS
State Bank of Vietnam Press Release -
On 28 December 2012, the State Bank of Vietnam (SBV) issued Circular No. 37/2012/TT-NHNN stating restrictions on foreign currency lending by domestic banks and foreign bank's branches to resident borrowers. This measure replaces an earlier Circular 03/2012/TT-NHNN (see related measure).
The Circular restricts foreign currency lending for -
For all the above lending, the credit institution has to submit an application to the SBV and submit their evaluations of the projects, ability of the projects to pay back the loans, that the borrowers meet the conditions set by the law for borrowings, that the foreign exchange lendings are for priortized and encourage areas and that the credit institution take responsibility for the evaluation outcome and the information provided in the requests.
The measure takes effect on 1 January 2013.