DECISION

PROVIDING FOR SUBJECTS ENTITLED TO FOREIGN CURRENCY LOANS FROM CREDITINSTITUTIONS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on Vietnam State Bank and the Law on CreditInstitutions dated December 12, 1997;
Pursuant to the Government’s Decree No.15/CP dated March 2, 1993on the tasks, powers and management responsibilities of the ministries andministerial-level agencies;
Pursuant to the Government’s Decree No.63/1998/ND-CP dated August17, 1998 on foreign exchange management;
Pursuant to the Prime Minister’s directing opinions in DocumentNo.1918/VPCP dated May 17, 2000 of the Government Office extending domestic subjectsentitled to loans in foreign currency;
At the proposal of the Director of the Foreign Exchange ManagementDepartment,

DECIDES

Article 1.- Credit institutions licensed to conduct foreignexchange operations (hereafter called credit institutions) may provide loans in foreigncurrency to their customers being residents in the following cases:

1. Providing loans for the payment to foreign parties for the import ofgoods and/or services in service of customers' production and/or business activities.

2. Providing loans to investment projects under the Prime Minister'sdecisions.

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4. Providing loans in form of export voucher discounting.

5. Providing loans for the payment of foreign debts before it is due,if such debts have already been guaranteed by domestic credit institutions and thefollowing conditions are fully met: the investment projects or production, business and/orservice plans using such loans are carried out efficiently; the loans fall within thedebt-repayment time-limit; the enterprises have the capability to pay debts; and theborrowing for the payment of foreign debts before the it is due meets more favorableconditions for capital borrowing or may save expenses as compared with the borrowing offoreign capital.

6. Providing loans to laborers who go to work overseas for given periods of time asprescribed by the State Bank.

Article 2.- For foreign currency loans, which are used by customersfor payment to foreign parties (payment for the import of goods and/or services to serveproduction and business activities, or in service of necessary financial demands oflaborers who go to work overseas for given periods of time, or for payment of foreigndebts), if such loans are used inside the country, customers shall sell them to thelending credit institutions in conformity with the objectives and regulations on foreignexchange management.

Article 3.- Credit institutions when providing loans to subjectsprescribed in Article 1 of this Decision, shall have to strictly comply with thestipulations of the Regulation on loan provision to customers by credit institutions,issued together with the State Bank Governor’s Decision No.284/2000/QD-NHNN1 datedAugust 25, 2000 and other provisions on foreign exchange management.

Article 4.- Basing themselves on the provisions of this Decision,the Regulation on loan provision to customers by credit institutions, issued together withthe State Bank Governors Decision No.284/2000/QD-NHNN1 dated August 25, 2000 as well as ontheir foreign currency capital sources, the credit institutions shall issue documentsguiding in detail the professional operations on the provision of loans to theabove-mentioned subjects in conformity with their conditions, characters and charters.

Article 5.- The provision of foreign currency loans to subjectsmentioned in Article 1 of this Decision must be pre-approved in writing by the State BankGovernor.

Article 6.- This Decision takes effect 15 days after its signingand replaces relevant stipulations of the Vietnam State Bank, which are contrary to thisDecision.

Article 7.- The heads of the units under the State Bank, thedirectors of the State Bank’s provincial/municipal branches; the presidents of theManagement Boards and the general directors (directors) of the credit institutions andborrowers of credit institutions shall have to implement this Decision.

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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR




Duong Thu Huong