Press Release on issuance of Circular No.01/2016/TT-NHNN
Implementing assigned task in Decree No.111/2015/ND-CP of the Government dated November 3, 2015, the State Bank of Vietnam (SBV) issued Circular No. 01/2016/TT-NHNN on February 4, 2016 on guiding the lending for the development of supporting industries as stipulated in Decree No. 111/2015/ND-CP dated November 3, 2015.
Circular No. 01/2016/TT-NHNN includes 11 Articles with main substances as follows:
1. Governing scope: the Circular guides the lending for the development of supporting industries as stipulated in Decree No. Decree No. 111/2015/ND-CP dated November 3, 2015. The borrowing from the state credit fund for developing supporting industries is not included as Implementers of this Circular.
2. Implementers: credit institutions, foreign bank branches provide priority loans for plans on manufacturing products of supporting industries belong to the list of products of supporting industries prioritized for development as stipulated in Article 11 of Decree No.111/2015/ND-CP.
3. Borrowers: institutions and individuals invest in plans on plans on manufacturing products of supporting industries prioritized for development.
4. Lending policy:
- Credit institutions and foreign bank branches apply VND short – term lending rates for short- term loans for plans on manufacturing products of supporting industries prioritized for development. The VND short – term lending rates do not exceed the maximum VND short- term lending rate applied by credit institutions and foreign bank branches for meeting capital demand of several fields and economic sectors decided by the SBV Governor for each period.
- SMEs, which borrow from credit institutions on the basis of guarantee of credit guarantee organizations for SMEs to invest in plans on manufacturing products of supporting industries prioritized for development, are provided preferential lending in line with Item 1 of this Article and also be considered by credit institutions to get loans equivalent to the maximum of 70% of the investment capital when they meet all requirements in Point a of Item 2 of Article 12 of Decree No. 111/2015/ND-CP.
5. Organizations providing guarantee for SMEs include:
- Credit Guarantee Fund for SMEs established in line with Decision No.58/2013/QD –TTg dated October 15, 2013 on establishment, organization and operations of Credit Guarantee Fund for SMEs;
- Vietnam Development Bank implements guarantee in accordance with Decision No.03/2011/QD – TTg dated January 10, 2011 on guarantee scheme for SMEs at commercial banks;
- Other institutions are allowed to provide guarantee for SMEs at credit institutions in compliance with applicable laws.
The Circular will take effect from February 2, 2016.
Translated by LH