HÀ NỘI – A new circular on lending activities of credit institutions and foreign bank branches is expected to overhaul the regulatory framework applicable to the activities in Việt Nam. Circular 39/2016/TT-NHNN issued by the State Bank of Việt Nam (SBV), which comes into effect from March 15, is also expected to ensure that lending continues to grow while non-performing loans are kept in check. Under the new circular, new kinds of lending, including revolving and rollover, will be permitted in Việt Nam. The new circular also regulates that business households and other unincorporated businesses will not be eligible for bank loans as this kind of lending is risky for credit institutions. Circular 39 will replace Decision 1627/2001/QĐ-NHNN, dated 31 December 2001, on the lending regime of credit institutions amended on multiple occasions by SBV over the 15 years of its implementation.

Source: Viet Nam News February 16, 2017 02:01 UTC