Press release on the issuance of Circular No.34/2019/TT-NHNN
On December 31, 2019, the Governor of the State Bank of Vietnam (SBV) issued Circular No.34/2019/TT-NHNN providing guidance for the foreign exchange management related to the foreign currency funds of the microfinance projects and programs of political institutions, socio-political organizations and non-governmental organizations.
Circular No.34/2019/TT-NHNN specifies the contents of foreign exchange management related to foreign currency funds of microfinance programs and projects, which are specified in Decision No. 20/2017/QD-TTg dated June 12, 2017 on the activities of microfinance programs and projects of political institutions, socio-political organizations and non-governmental organizations.
Specifically, Circular No. 34/2019/TT-NHNN is composed of 8 Articles with the following main substances:
1. Principles of mobilizing capital in foreign currencies of political institutions, socio-political organizations and non-governmental organizations to implement microfinance projects and programs;
2. The contents of foreign exchange management related to foreign currency funds of political institutions, socio-political organizations and non-governmental organizations to implement microfinance projects and programs, consisting of the following provisions:
(i) The opening and use of a foreign currency account to receive aids and non-refundable grants in foreign currencies from non-residents;
(ii) The responsibility to present documents of the recipient of aids or non-refundable grants in foreign currencies;
(iii) The sale of foreign currencies from aids or non-refundable grants;
(iv) The responsibilities of the licensed credit institutions in providing account services to political institutions, socio-political organizations and non-governmental organizations when such entities receive aids and non-refundable grants in foreign currencies;
This Circular takes effect from February 14, 2020.
Translated by VA