Press release on issuance of Circular No. 11/2022/TT-NHNN
Hanoi, September 30, 2022 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 11/2022/TT-NHNN regulating the bank guarantees.
The new Circular is composed of four (04) Chapters and 37 Articles, and shall replace Circular No. 07/2015/TT-NHNN issued on June 25th, 2015 by the SBV Governor regulating the bank guarantees, and Circular No.13/2017/TT-NHNN dated September 29, 2017 amending and supplementing a number of Articles of Circular No. 07/2015/TT-NHNN.
The issuance of Circular No. 11/2022/TT-NHNN is aimed to improve the legal framework and ensure the consistency with the international practices, as well as the conformity with the applicable laws, resolving the current gaps and meeting the practical requirements, while still ensuring the effectiveness, safety and smooth operations of the bank guarantees performed by the credit institutions and the foreign bank branches.
In comparison with Circular No. 07/2015/TT-NHNN and Circular No.13/2017/TT-NHNN, the new Circular contains a number of key amendments and supplementations related to (i) The subjects of application; (ii) Identification of the outstanding guarantee amounts; (iii) Terminologies; (iv) Electronic guarantee operations; (v) Guarantees in selling, leasing and buying residential houses formed in the future; (vi) Agreements about granting guarantees and guarantee commitments; (vii) The validity period of a guarantee commitment; (viii) Implementation of guarantee obligations; (ix) Internal regulations and other regulations.
The Circular will take effect on April 1, 2023.
Translated by Le Hang