Tiếng Việt

Legal update relating to Finance and Credit (Monthly Legal Update – 06/2020)

by | Jun 12, 2020 | Banking, EN, Legal Update | 0 comments

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/06/2020

Circular No. 28/2020/TT-BTC annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance

  • Name of legal document: Circular No. 28/2020/TT-BTC issued on 17/04/2020 by the Minister of Finance annulling a number of legal documents issued by the Minister of Finance in the fields of securities, insurance business and banking finance (referred to as the “Circular No. 33/2020/TT-BTC”).

  • Effective date: 02/06/2020.

The content should be noted: Annulling a number of legal documents promulgated by the Minister of Finance in the field of banking finance.

Specifically, Article 3 of Circular No. 28/2020/TT-BTC stipulates: “Article 3. Annulling all contents of 02 legal documents issued by the Minister of Finance in the field of banking and finance, as follow:

  1. Circular No. 105/2007/TT-BTC on August 30, 2007 of the Ministry of Finance guiding on handling of risk for investment credit capital and export credit of the State.

  2. Circular No. 35/2012/TT-BTC on March 2, 2012 of the Ministry of Finance guiding a number of articles of Decree No. 75/2011/ND-CP on August 30, 2011 of the Government on the investment credit and export credit of State.”

2. LEGAL DOCUMENTS ARE ISSUED IN 05/2020

2.1. Decision No. 918/QD-NHNN refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the Sate Bank of Vietnam 

  • Name of legal document: Decision No. 918/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the Sate Bank of Vietnam  (referred to as the “Decision No. 918/QD-NHNN”).

  • Effective date: 13/05/2020.

Some contents should be noted:

  • Firstly, stipulating the interest rates are adopted by the State Bank of Vietnam.

Specifically, Article 1 of Decision No. 918/QD-NHNN stipulates: “Article 1. The following interest rates are adopted by the State Bank of Vietnam, including:

  1. Refinancing interest rate:  4.5%/year.

  2. Re-discount interest rate: 3.0%/year.

  3. Interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the state bank of Vietnam: 5.5%/year.”

  • Secondly, Decision No. 918/QD-NHNN supersedes the Decision No. 418/QD-NHNNdated March 16, 2020 by of the Governor of the State Bank of Vietnam.

Specifically, Article 2 of Decision No. 918/QD-NHNN stipulates: “Article 2. This Decision comes into force from May 13, 2020 and supersedes the Decision No. 418/QD-NHNN dated March 16, 2020 by of the Governor of the State Bank of Vietnam on refinancing interest rate, re-discount interest rate, interest rate on overnight loans in interbank electronic payment and loans for making up fund deficits in clearing payment given to banks by the State Bank of Vietnam.”

2.2. Decision No. 919/QD-NHNN maximum interest rates of deposits in Vietnam dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014

  • Name of legal document: Decision No. 919/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam maximum interest rates of deposits in Vietnam dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014  (referred to as the “Decision No. 919/QD-NHNN”).

  • Effective date: 13/05/2020.

Some contents should be noted:

  • Firstly, stipulating maximum interest rates of deposits in Vietnam Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNNdated March 17, 2014.

Specifically, Article 1 Decision No. 919/QD-NHNN stipulates: “Article 1. Maximum interest rates of deposits in Vietnam Dong of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:

  1. The maximum interest rate of demand deposits and deposits with term less than 1 month is 0.2%/year.

  2. The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4.25%/year; in particular, people’s credit funds and microfinance institutions shall adopt the maximum interest rate of 4.75%/year with respect to deposits with a term from 1 month to less than 6 months.”

  • Secondly, Decision No. 919/QD-NHNN supersedes the Decision No. 419/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Clause 1 Article 2 of Decision No. 919/QD-NHNN stipulates: “Article 2. 

  1. This Decision comes into force from May 13, 2020 and supersedes Decision No. 419/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing maximum interest rates of deposits in Vietnam Dong of organizations and individuals at credit institutions and foreign bank branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014.”

2.3. Decision No. 920/QD-NHNN prescribing maximum interest rates of short-term loans in vietnam dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNN dated December 30, 2016

  • Name of legal document: Decision No. 920/QD-NHNN issued on 12/05/2020 by the State Bank of Viet Nam prescribing maximum interest rates of short-term loans in vietnam dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNNdated december 30, 2016  (referred to as the “Decision No. 920/QD-NHNN”).

  • Effective date: 13/05/2020.

Some contents should be noted:

  • Firstly, stipulating maximum interest rates of short-term loans in Vietnam Dong according to Clause 2 Article 13 of the Circular No. 39/2016/TT-NHNN dated December 30, 2016.

Specifically, Article 1 of Decision No. 920/QD-NHNN stipulates: “Article 1. Maximum interest rates of short-term loans in Vietnam Dong according to Clause 2 Article 13 of the Circular No. 39/2016/TT-NHNN dated December 30, 2016 are as follows:

  1. Credit institutions and foreign bank branches (except people’s credit funds and microfinance institutions) shall offer short-term loans in Vietnam Dong with the maximum interest rate of 5.0%/year.

  2. People’s credit funds and microfinance institutions shall offer short-term loans in Vietnam Dong with the maximum interest rate of 6.0%/year.”

  • Secondly, Decision No. 920/QD-NHNN supersedes Decision No. 420/QD-NHNNdated March 16, 2020 of the Governor of the State Bank of Vietnam.

Specifically, Clause 1 Article 2 of Decision No. 920/QD-NHNN stipulates: “Article 2. 

1. This Decision comes into force from May 13, 2020 and supersedes Decision No. 420/QD-NHNN dated March 16, 2020 of the Governor of the State Bank of Vietnam prescribing maximum interest rates of short-term loans in Vietnam Dong offered by credit institutions and foreign bank branches to customers to meet their demand of fund in certain economic sectors according to Circular No. 39/2016/TT-NHNN dated December 30, 2016.”