On the afternoon of August 23, the State Bank of Vietnam (SBV) unexpectedly issued Circular No. 10/2023 /TT-NHNN. Under the newly issued Circular, the SBV suspended the implementation of Clauses 8, 9, and 10 of Article 8 of Circular No. 39/2016/TT-NHNN, which had prohibited lending for certain purposes.
Regarding Circular No. 10 mentioned above, the State Bank of Vietnam previously issued Circular No. 06/2023/TT-NHNN on June 28, 2023, effective from September 1, 2023. This Circular introduced additional provisions aimed at controlling risks arising from lending activities and helping to ensure the safe operation of the credit institution system.
In Circular No. 10/2023/TT-NHNN dated August 23, 2023, the State Bank explained that, amid continuing economic difficulties and in order to further prioritize economic growth, it issued the Circular to suspend the implementation of Clauses 8, 9, and 10 of Article 8 of Circular No. 39/2016/TT-NHNN, as supplemented by Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN. The suspension took effect from September 1, 2023, until the effective date of a new legal normative document governing these matters. Specifically, the following provisions were deferred.
Article 8. Capital needs ineligible for loans
8. To pay for capital contributions; to purchase or receive the transfer of capital contributions in limited liability companies or partnerships; or to make capital contributions, purchase, or receive the transfer of shares in joint-stock companies that are not listed on the securities market or are not registered for trading on the UPCoM trading system.
9. To pay capital contributions under capital contribution contracts, investment cooperation contracts, or business cooperation contracts for the implementation of investment projects that are not eligible to be put into business operation under applicable law at the time the credit institution decides to provide the loan.
10. To cover financial shortfalls, except where the loan fully satisfies the following conditions:
a) The customer has advanced its own funds to make payments for expenses incurred in implementing a business project, provided that such expenses arose within 12 months prior to the date on which the credit institution decides to provide the loan;
b) Expenses paid from the customer’s own funds for implementing the business project must be expenses intended to use loan proceeds from the credit institution, in accordance with the loan-use plan submitted to the credit institution for consideration of medium- or long-term lending for that business project.
The State Bank stated that it would coordinate with relevant agencies and entities to study and consider appropriate solutions to control risks, ensure the safe operation of credit institutions, and help ease difficulties faced by individuals and businesses.
Source: SBV, VnEconomy
