CIRCULAR

GUIDING NEGOTIABLE INTEREST RATES APPLIED BY CREDIT INSTITUTIONS TO CONSUMER LOANS AND LOANS PROVIDED THROUGH THE CREDIT CARD ISSUANCE AND USE OPERATION

Pursuant to the Government's Resolution No. 30/2008/NQ-CP of December 11, 2008. on urgent measures to curb economic decline, maintain economic growth and assure social welfare;
Based on the Prime Minister's directions in the Government Office's Document No. 627/ VPVP-KTTH of January 23, 2009, on the application of negotiable lending interest rates by credit institutions;
The State Bank of Vietnam guides negotiable interest rates applied by credit institutions to consumer loans and loans provided through the credit card issuance and use operation as follows:

1. Credit institutions shall apply negotiable interest rates to consumer loans and loans provided through the credit card issuance and use operation in compliance with the State Bank of Vietnam's regulations on the provision of loans by credit institutions to their clients and on the basis of the market capital supply-demand and borrowers' creditworthiness.

2. Credit institutions shall determine credit limits for a client and domains in which they will provide consumer loans and loans through the credit card issuance and use operation in accordance with the State Bank of Vietnam's regulations on safety ratios and business operation conditions of credit institutions.

3. Credit institutions shall strictly control credit limits and quality of consumer loans and loans provided through the credit card issuance and use operation.

4. This Circular takes effect on February 1, 2009.

5. The director of the Office, the director of the Monetary Policy Department and heads of units under the Slate Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam, and chairmen of boards of directors and general directors (directors) of credit institutions shall implement this Circular.

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FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR





Nguyen Dong Tien