On August 23rd, 2023, The State Bank issued Circular No. 10/2023/TT-NHNN, whereby:
Ceasing to be in effect of Clause 8, 9 and 10 Article 8 issued Circular No. 39/2016/TT-NHNN dated December 30th, 2016 signed by the Governor Of State Bank Of Vietnam prescribing lending transactions of credit institutions and/or foreign bank branches with customers (amended by Clause 2 Article 1 Circular No. 06/2023/TT-NHNN dated June 28th, 2023 signed by Governor Of State Bank Of Vietnam on amendments to circular no. 39/2016/TT-NHNN dated December 30th, 2016) from September 1st, 2023 until new legal regulations governing these issues take effect.
Thus, the following loan demands are no longer rejected:
- Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership, or shares of a joint-stock company that is not yet listed on the securities market or registered for trading on the Upcom system.
- Loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects that are unfit for sale or for business operation as prescribed by laws when the credit institution issues its lending decision.
- Loans used for financial offsetting purposes, except for those meeting the following conditions:
- a) The customer has used their own funds for paying costs incurred from their business project for a period of less than 12 months by the time of grant of lending decision by the credit institution;
- b) Costs paid using the customer’s funds for executing a business project are costs to be covered using the funds borrowed from the credit institution under the plan to use borrowed funds submitted to the credit institution when applying for a medium-term or long-term loan for executing that business project.
