Tiếng Việt

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 04/2025)

by | Apr 2, 2025 | Banking, EN, Legal Update

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 04/2025

1.1.  Circular No. 61/2024/TT-NHNN on bank guarantee

  • Name of legal document: Circular No. 61/2024/TT-NHNN issued on 31/12/2024 by the State Bank of Vietnam on bank guarantee (referred to as the “Circular No. 61/2024/TT-NHNN”).
  • Effective date: 01/04/2025.

The content should be noted:

  • Firstly, stipulating on the conditions for guarantee for off-plan housing.

Specifically, 19 of Circular No. 61/2024/TT-NHNN stipulates: “Article 13. Guarantee for off-plan housing

  1. Commercial banks and FBBs shall consider and decide to provide guarantees for project owners if:a) The project owner meets all the requirements specified in Article 11 of this Circular[1] (except in cases where the commercial bank or FBB guarantees the project owner based on a counter-guarantee);b) The project owner has received a written confirmation from the province-level real estate business regulatory authority stating that the housing units are eligible for sale or lease-purchase.”
  • Secondly, stipulating guarantee fees.

Specifically, Clause 1 of Article 13 of Circular No. 61/2024/TT-NHNN stipulates: “Article 19. Guarantee fees

  1. The credit institution or FBB shall agree on the guarantee fee level with the customer and other relevant parties (if any) and must publicly disclose the guarantee fee schedule.
  2. In the case of co-guarantees, the parties involved in the co-guarantee shall agree on the guarantee fee for each guarantor.
  3. In the case where the credit institution or FBB guarantees a joint obligation, the credit institution or FBB shall agree with each customer on the payable guarantee fee based on the respective joint obligation of each customer, unless otherwise agreed by the parties.
  4. If the guarantee currency is a foreign currency, the parties may agree to collect the guarantee fee in that foreign currency or convert it into Vietnamese dong based on the selling exchange rate of the guarantor at the time of fee collection or at the time of fee notification.
  5. The parties may agree to adjust the guarantee fee level.”

[1] Article 11 of Circular No. 61/2024/TT-NHNN: “Article 11. Requirements to be satisfied by customers

  1. A credit institution or FBB shall consider and decide on issuing a guarantee, counter-guarantee, or guarantee confirmation for a customer when the customer meets the following requirements: a) Has full passive legal capacity, active legal capacity as prescribed by law; b) The guaranteed obligation is a lawful financial obligation; c) Is assessed by the credit institution or FBB issuing the guarantee as having the ability to repay the amount that the credit institution or FBB is required to pay on behalf of the obligor when fulfilling the guarantee obligation. 2. Credit institutions and FBBs are not permitted to issue guarantees for the payment obligations of bonds issued by enterprises if the purpose of such bond issuance is for: restructuring the debts of the issuing enterprise itself; contributing capital or acquiring shares in another enterprise; and expanding operating capital.”