Stop implementing some regulations that cause difficulties for businesses in Circular 06

The State Bank of Vietnam (SBV) has just issued information regarding the issuance of Circular No. 10/2023/TT-NHNN suspending the implementation of Clauses 8, 9 and 10, Article 8 of Circular No. 39 (supplemented by Clause 2, Article 1 of Circular No. 06) on the prohibition of lending in certain areas.

On June 28, 2023, the State Bank of Vietnam issued Circular No. 06, effective from September 1. The Circular has added regulations on lending in line with the digital transformation process in banking operations and other regulations to remove obstacles and create more favorable conditions for customers to access bank loans.

At the same time, the Circular supplements a number of regulations to control risks arising in lending activities, contributing to ensuring the operational safety of the credit institution system.

However, in Circular No. 10/2023 dated August 23, the State Bank explained that, in the context of the economy still facing many difficulties, in order to further prioritize promoting economic growth, the operator issued this circular with the content of suspending the implementation of Clauses 8, 9 and 10, Article 8 of Circular No. 39 (supplemented by Clause 2, Article 1 of Circular No. 06) from September 1 until the effective date of the new legal document regulating these issues.

Previously, Prime Minister Pham Minh Chinh signed document No. 756 on August 23 urging reporting on the implementation results of the Government leaders' direction.

In this document, the Prime Minister requested the State Bank of Vietnam to urgently review and amend Circular No. 06 to suspend the implementation of regulations causing difficulties, to be completed by August 25, to create favorable conditions for businesses and people to access credit capital.

Specifically, the following provisions are suspended.

Article 8. Capital needs that are not eligible for loans

8. To pay for capital contributions, purchase, or receive transfers of capital contributions of limited liability companies or partnerships; to contribute capital, purchase, or receive transfers of shares of joint stock companies that are not listed on the stock market or have not registered for trading on the UPCoM trading system.

9. To pay for capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts to implement investment projects that do not meet the conditions for putting into business according to the provisions of law at the time the credit institution decides to lend.

10. For financial compensation, except where the loan fully meets the following conditions:

a) The customer has advanced his/her own capital to pay for the costs of implementing a business project, and the costs of implementing this business project have arisen within 12 months from the time the credit institution decides to lend;

b) Expenses paid and disbursed with the customer's own capital to implement the business project are expenses using the credit institution's loan capital according to the capital use plan submitted to the credit institution for consideration of medium and long-term loans to implement that business project.

The State Bank said that in the coming time, it will coordinate with relevant agencies and units to research and consider appropriate solutions to control risks, ensure the safety of credit institutions' operations, and support in removing difficulties for people and businesses .

Source