Socialist Republic of Vietnam

STATE BANK OF VIETNAM

No. 718-2001-QD-NHNN Hanoi, 29 May 2001


DECISION ON CHANGE OF MECHANISM TO CONTROL INTEREST RATES ON LOANS DENOMINATED IN UNITED STATES DOLLARS PROVIDED BY CREDIT INSTITUTIONS TO CUSTOMERS


The Governor of the State Bank of Vietnam

Pursuant to the Law on State Bank of Vietnam and the Law on Credit Institutions dated 12 December 1997;

Pursuant to Decree 15-CP of the Government dated 2 March 1993 on duties, powers and responsibilities for State administration of ministries and ministerial equivalent bodies;

On the proposal of the Director of the Department for Monetary Policy;

Decides:


Article 1

1. Credit institutions shall determine interest rates on loans denominated in United States dollars on the basis of the interest rates in the international market and the domestic demand and supply of credit in foreign currency.

2. The provisions of article 3.1 of Decision 241-2000-QD-NHNN1 of the Governor of the State Bank dated 2 August 2000 on Change of Mechanism to Control Interest Rates on Loans Provided by Credit Institutions to Customers and Decision 243-2000-QD-NHNN1 of the Governor of the State Bank dated 2 August 2000 on Interest Rate Margin as Basis for Credit Institutions to Fix Interest Rates on Loans Denominated in United States Dollars to Customers are hereby repealed.

Article 2

1. At the time of effectiveness of this Decision, any outstanding loan and any credit contract which has been signed but for which disbursements have not yet been completed or conducted, the interest rate stated in such credit contract shall continue to be applied. Adjustment of the interest rates of such credit contracts shall be considered and agreed by the credit institution and customer.

2. The overdue interest rate shall be agreed in the credit contract to be entered into between the credit institution and the customer, but shall not exceed one hundred and fifty (150) per cent of the interest rate on a loan denominated in United States dollars stated in the credit contract.

Article 3

1. This Decision shall be of full force and effect as of 1 June 2001.

2. Heads of units under the State Bank, directors of State Bank branches of provinces and cities, and chairmen of boards of management and general directors (directors) of credit institutions shall be responsible for implementation of this Decision.


The Governor of the State Bank


LE DUC THUY