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State Bank regulates overseas lending

State Bank regulates overseas lending

State Bank regulates overseas lending

The State Bank of Viet Nam issued Circular No 45/2011/TT-NHNN on December 30 regulating overseas lending and collecting debt by credit institutions. Under the circular, intended to control outbound foreign currency flows, domestic credit institutions are only allowed to lend to an enterprise with capital contributed by a Vietnamese enterprise in the form of a direct overseas investment. The State Bank will approve registration and modifications of such loans within 30 days. Each loan must be made via a single bank account used for making and collecting on foreign loans. The credit institution must disburse and make all collections via this account. The circular takes effect on February 13.

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