Socialist Republic of Vietnam

STATE BANK OF VIETNAM

No. 993-2001-QD-NHNN Hanoi, 6 August 2001


DECISION ON LIMITS ON UNSECURED LENDING BY STATE COMMERCIAL BANKS, FOREIGN BANK BRANCHES IN VIETNAM, FINANCIAL COMPANIES IN STATE CORPORATIONS AND BANKS FOR THE POOR


The Governor of the State Bank

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated 12 December 1997;

Pursuant to Decree 15-CP of the Government dated 2 March 1993 on duties, powers and responsibilities for State administration of ministries and ministerial equivalent bodies;

Pursuant to article 21.2 of Decree 178-1999-ND-CP of the Government dated 29 December 1999 on Security for Loans Obtained from Credit Institutions;

On the proposal of the Director of the Department for Monetary Policy;

Decides:


Article 1

1. Chairmen of the boards of management of the Bank of Agriculture and Rural Development of Vietnam, the Industrial and Commercial Bank of Vietnam, the Foreign Trade Bank of Vietnam, the Bank for Investment and Development of Vietnam and the Bank for Housing Development in Cuu Long Delta (hereinafter referred to as State commercial banks); and general directors (directors) of financial companies in State corporations and general directors of foreign bank branches in Vietnam may decide on the limit on lending unsecured by property to their borrowing customers and shall be responsible for their own decisions.
2. Banks for the poor may lend to poor individuals and family households without security using property in accordance with the provisions in Decision 525-TTg of the Prime Minister of the Government dated 31 August 1995 on establishment of banks for the poor, or may lend on the basis of guarantees by reputation from socio-political organizations at grass-roots levels as provided for in Decree 178-1999-ND-CP of the Government dated 29 December 1999 on Security for Loans Obtained from Credit Institutions and in Circular 06-2000-TT-NHNN1 of the Governor of the State Bank dated 4 April 2000 providing guidelines for implementation of that Decree.

Article 2

1. The limit on lending unsecured by property of a credit institution referred to in article 1.1 of this Decision shall be calculated on the basis of the total loan balance of that credit institution, not including:

(a) Outstanding unsecured loans as prescribed by the Government;

(b) Outstanding loans unsecured by property for subjects in accordance with the provisions in Decision 67-1999-QD-TTg of the Prime Minister of the Government dated 30 March 1999 on credit policies for the Bank of Agriculture and Rural Development; outstanding loans unsecured by property of up to twenty (20) million dong to agricultural families and farm-owners engaged in agricultural production, forestry or aquaculture in the nature of goods production pursuant to clause 4 of Section 1 of Circular 10-2000-TT-NHNN1 of the Governor of the State Bank dated 31 August 2000 providing Guidelines on Implementation of Solutions on Loan Security for Credit Institutions in Accordance with Resolution 11-2000-NQ-CP of the Government dated 31 July 2000 on Solutions for Managing the Socio-Economic Development Plan for the Second Half of 2000;

(c) Outstanding loans unsecured by property mortgage of up to fifty (50) million dong to organizations, households and individuals for production of aquaculture seedlings pursuant to article 4.2 of Decision 103-2000-QD-TTg of the Governor of the State Bank dated 25 August 2000 on a Number of Policies for Encouraging the Development of Aquaculture Breeding.

2. The limit on lending unsecured by property to borrowers by credit institutions stipulated in article 1.1 of this Decision shall only apply to credit contracts entered into as from 3 September 2000.

Article 3

State commercial banks, foreign bank branches in Vietnam and financial companies in State corporations shall make decisions on and carry out lending unsecured by property to borrowing customers on the basis of ensuring the safety of their credit operations and compliance with the provisions on lending unsecured by property in Decree 178-1999-ND-CP of the Government dated 29 December 1999 on Security for Loans Obtained from Credit Institutions, Circular 06-2000-TT-NHNN1 of the Governor of the State Bank dated 4 April 2000 providing guidelines for implementation of that Decree, and other relevant legal instruments.

Article 4 Implementing provisions

1. This Decision shall be of full force and effect as of the date of its signing and shall replace Decision 107-2000-QD-NHNN1 of the Governor of the State Bank dated 4 April 2000.

2. The head of the State Bank Inspectorate shall be responsible to check and supervise the implementation of this Decision.

3. Heads of units under the State Bank, directors of State Bank branches in provinces and cities under central authority, and boards of management and general directors (directors) of State commercial banks, foreign bank branches in Vietnam, financial companies in State corporations and banks for the poor shall be responsible for implementation of this Decision.

4. The Governor of the State Bank shall decide on any amendments of and additions to this Decision.


For the Governor of the State Bank
Deputy Governor


DUONG THU HUONG