From October 1, commercial banks will not be allowed to lend foreign currencies in the medium and long term to pay abroad for the import of goods and services when borrowers have enough foreign currency from production and business revenues to repay the loan.
That is the regulation in Circular 42/2018 / TT-NHNN amending and supplementing a number of articles of Circular No. 24/2015 / TT-NHNN regulations on lending in foreign currencies by credit institutions and foreign bank branches to resident borrowers.
Accordingly, from October 1, credit institutions and branches of foreign banks will stop lending medium and long-term foreign currencies to pay overseas money to import goods and services to serve the needs. domestic customers even when borrowers have enough foreign currency from production and business revenues.
According to the State Bank, this Circular aims to concretize the Government's policy on limiting dollarization in the economy, gradually implementing the roadmap for gradual transition of mobilization – lending relationship to purchasing relationship. – selling foreign currencies.
Previously, short-term foreign currency loans for making payments abroad for the import of goods and services to implement the plan of goods production and trading to serve domestic demand when the borrowers had enough foreign currencies. Currency from production and business revenues to pay debts has also ended since March 31.
According to Circular 42/2018 / TT-NHNN, from October 1, credit institutions and foreign bank branches will have to stop all foreign currency lending activities to enterprises. import goods and services to serve the domestic demand.
On the other hand, credit institutions are only allowed to consider lending decisions in foreign currencies for capital needs, including:
– Providing short-term loans to pay abroad for the import of goods and services in order to implement the production and trading plan of exported goods through Vietnam's border gates when the borrowers have enough foreign currency from the source revenue from production and business activities to repay loan debts;
– Providing short-term loans to petrol and oil import enterprises with annual petrol import quotas assigned by the Ministry of Industry and Trade to pay abroad oil and gas import money when petrol and oil import enterprises do not have or not having enough foreign currency revenue from production and business activities to pay debts;
– Providing short-term loans to meet domestic capital demands in order to implement plans on production and trading of goods exported through Vietnamese border gates where borrowers have enough foreign currencies from export revenue sources to repay the loan.
When disbursed by a credit institution, the borrower must resell such foreign currency to that credit institution in the form of spot transaction, unless the borrower needs to borrow capital to perform the payment transaction. The law requires that the payment currency be in foreign currency.
– Providing loans for outward investment with regard to investment projects approved by the National Assembly or the Prime Minister and approved by the Ministry of Planning and Investment abroad.
Handsome
Source: VietnamNet
