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Regulations on foreign currency loans announced
VGP 09:36, 2013/12/12
The State Bank of Viet Nam (SBV) has recently issued a circular regulating foreign currency loans offered by credit institutions and foreign banks’ branches to residents.
The loans can be granted to pay for imported goods and services if the borrowers are able to repay the loans from their foreign currency earnings in production and trade.

Petroleum importers, which have been assigned by the Ministry of Industry and Trade to import petroleum in 2014, can access short-term loans to pay for their imports when they have not got enough foreign currencies earned from production and trade to pay debts. This regulation is applicable till December 31, 2014.

Short-term loans are also offered to local businesses which produce or trade exports through Vietnamese borders and have ability to repay the loans from their export turnovers.

When the loans are disbursed, borrowers must sell the currencies to the lenders in the spot foreign exchange transaction, except loans for transactions regulated by law to be conducted in foreign currencies. This is applied till December 31, 2014.

In addition, the loans can be applied for projects, which are decided by the National Assembly, the Government or the Prime Minister and licensed by the Ministry of Planning and Investment to invest in other countries.

The circular also regulates that the loans can be granted to the fields, which are prioritized and encouraged to develop in accordance with the Government policies, after the SBV accepts in documents as regulated.

The lenders send the SBV a document describing the loan for approval and the bank will response within 30 working days since the day it receives the suggestion.

The circular will be effective from January 1, 2014.

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