DECISION

ON THE LENDING IN FOREIGN CURRENCY BY CREDIT INSTITUTIONS TO BORROWING CUSTOMERS BEING RESIDENTS

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank dated 12 December, 1997 and the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam No. 10/2003/QH 11 dated 17 June, 2003;
- Pursuant to the Law on Credit Institutions
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government on the functions, assignment, authority and organizational structure of ministries and ministerial level agencies;
- Pursuant to the Decree No. 63/1998/ND-CP dated 17 August, 1998 of the Government on foreign exchange control and the Decree No. 05/2001/ND-CP dated 17 January, 2001 of the Government on the amendment, supplement of several Articles of the Decree No. 63/1998/ND-CP dated 17 August, 1998 of the Government on foreign exchange control;
- Upon the proposal of the Director of Monetary Policy Department,

DECIDES:

Article 1. Credit institutions authorized to engage in foreign exchange activities shall be entitled to lend in foreign currency to resident customers for following funds requirements:

1. Lending for the foreign payment of imported goods and services used for the production and business activities of customers;

2. Lending for the implementation of investment projects, production and business plan of export goods and services; lending for the implementation of investment projects, production and business plan of customers who have foreign currency income in the territory of Vietnam;

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4. Lending to workers who go and work for a certain period of time abroad in accordance with applicable provisions of the State Bank;

5. Lending for the implementation of investment projects under the Decision of the Prime Minister;

6. Lending for the pre-payment of foreign loans before its repayment term, if loans satisfy following conditions: Investment projects, production and business plans, which use those foreign loans, are effective; enterprises are capable of repayment of the principals and interests of foreign currency loans; reducing the expenses for loan funds compared with the foreign loans.

7. Requirements of short-term loan funds for the production, business that borrowing customers do not have foreign currency income, if there is any written commitment in advance by credit institutions authorized to engage in foreign exchange activities to sell foreign currency or if there is any contract of foreign currency purchase for loans repayment.

8. For requirements of loan funds, which are not subject to provisions of this Article, a written approval of the Governor of the State Bank must be obtained.

Article 2. Credit institutions are entitled to lend in foreign currency in accordance with this Decision and provisions of applicable laws on the lending, foreign exchange control. In case where the loan foreign currency is used domestically, customers must sell the borrowed foreign currency to the lending credit institution.

Article 3.

1. This Decision shall be effective after 15 days from the date of publication in official Gazette and replace Decisions: the Decision No. 418/2000/QD-NHNN dated 21 September, 2000 of the Governor of the State Bank on the objects of lending in foreign currency by credit institutions; the Decision No. 343/2003/QD-NHNN dated 10 April, 2003 of the Governor of the State Bank on the amendment, supplement of Article 1 of the Decision No. 418/2000/QD-NHNN7 dated 21 September, 2000 of the Governor of the State Bank on the objects of lending in foreign currency by credit institutions.

2. Heads of units of the State Bank of Vietnam, General Managers of the State Bank branches in provinces, cities under the central Government's management, the Board of Directors, General Directors (Directors) of credit institutions authorized to engage in foreign exchange activities, borrowing customers shall be responsible for the implementation of this Decision.

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Phung Khac Ke