CASES CREDIT INSTITUTIONS DO NOT GIVE LOANS FROM 1/9/2023

Circular 06/2023/TT-NHNN dated June 28, 2023, of the State Bank of Vietnam amending and supplementing regulations on non-lending capital needs.

The State Bank issued Circular 06/2023/TT-NHNN dated June 28, 2023, amending and supplementing several articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016, of the Governor of the Bank. The State Bank of Vietnam stipulates lending activities of credit institutions and foreign bank branches to customers.

Which, Circular 06/2023/TT-NHNN amending and supplementing Article 8 of the capital needs not allowed to be loaned.

Cant borrow money to send money

Specifically, credit institutions are not allowed to lend for capital needs:

1- To carry out investment and business activities in industries and trades banned from investment and business by the Law on Investment.

2- To pay expenses and meet the financial needs of business investment activities in industries and trades banned from investment and business by the Law on Investment and other transactions and acts prohibited by law. ban.

3- To purchase and use goods and services in sectors and trades banned from investment and business by the Law on Investment.

4- To buy gold bars.

5- To repay the loan at the lending credit institution, except for the case of lending to pay the loan interest arising during the construction of the work, the loans interest cost is calculated in total construction investment approved by competent authorities by law.

6- To repay foreign loans (excluding foreign loans in the form of deferred payment of goods purchase and sale), credit extension at other credit institutions, except for loans to repay loans before maturity. The loan fully meets the following conditions:

+ The loan term does not exceed the remaining loan term of the old loan;

+ It is a loan that has not yet been restructured.

7- To send money.

Not allowed to borrow capital to pay for capital contribution, purchase or transfer capital contribution of a limited company

8- To pay for capital contribution, purchase, receive and transfer capital contributions of limited liability companies or partnerships; contribute capital, purchase, receive, and transfer shares of joint stock companies that have not been listed on the stock market or have not been registered for trading on the Upcom trading system.

9- To pay the capital contribution under the capital contribution contract, investment cooperation contract, or business cooperation contract for the implementation of an investment project that is not eligible to be put into business as prescribed by law at that time. credit institutions decide to lend.

10- For financial compensation, unless the loan fully meets the following conditions:

+ The customer has advanced the customers capital to pay and pay the cost of implementing the business project, which the costs of implementing this business project have been incurred less than 12 months up to the time of the organization. credit institutions decide to lend;

+ Expenses that have been paid and paid with the customers capital for the implementation of the business operation project are the expenses that use the loan capital of the credit institution according to the capital use plan sent to the organization. credit to be considered for medium and long-term loans to carry out that business project.

Circular 06/2023/TT-NHNN takes effect from September 1, 2023.

For loan agreements and credit contracts signed before September 1, 2023, credit institutions and customers continue to implement the contents of the signed loan agreements and credit contracts. by the provisions of the law in force at the time of signing such loan agreement or credit contract. In case of an agreement to amend or supplement the loan agreement or credit contract, the amended and supplemented content must conform to the provisions of this Circular.

Source: Government Newspaper