Circular 10/2023/TT-NHNN dated August 23, 2023 of the State Bank Suspension of some content on “capital needs that cannot be loaned”
Accordingly, suspend the implementation of Clause 8, Clause 9 and Clause 10, Article 8 of Circular No. 39/2016/TT-NHNN dated December 30, 2016 (added according to Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN dated June 28, 2023 on amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN) from September 1, 2023 until the effective date of the new legal documents regulating these issues.
The content whose effect is suspended is specifically as follows:
“Article 8. Rejected loan demands
- Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership, or shares of a joint-stock company that is not yet listed on the securities market or registered for trading on the Upcom system.
- Loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects that are unfit for sale or for business operation as prescribed by laws when the credit institution issues its lending decision.
- Loans used for financial offsetting purposes, except for those meeting the following conditions:
a) The customer has used their own funds for paying costs incurred from their business project for a period of less than 12 months by the time of grant of lending decision by the credit institution;
b) Costs paid using the customer’s funds for executing a business project are costs to be covered using the fund borrowed from the credit institution under the plan to use borrowed fund submitted to the credit institution when applying for a medium-term or long-term loan for executing that business project.”
This Circular takes effect from September 1, 2023.