DECISION

ON THE CHANGE OF OPERATIONAL MECHANISM OF LENDING INTEREST RATES IN US$ OF CREDIT INSTITUTIONS FOR CUSTOMERS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam and the Law on the Credit Institutions dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated 02 March, 1993 of the Government on the assignment, authority and responsibility for the State management of the ministries and ministerial-level agencies;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1.

1. Credit institutions shall determine lending interest rates in US$ for customers on the basis of the interest rate of international market and domestic demand, supply of credit funds in foreign currency.

2. To repeal the provisions of paragraph 1 Article 3 of the Decision No. 241/2000/QD-NHNN1 dated 2 August, 2000 of the Governor of the State Bank on the change of operational mechanism of lending interest rates of credit institutions for customers and the Decision No. 243/2000/QD-NHNN1 dated 2 August, 2000 of the Governor of the State Bank on the announcement of the US$ interest rate bands as a basis for the determination by credit institutions of lending interest rates for customers.

Article 2.

1. At the effective time of this Decision, the outstanding loans and credit contracts, which have been entered into but not fully disbursed or not yet disbursed, shall continue to be subject to the interest rate stated in respective credit contracts. The adjustment of the lending rates for those credit contracts shall be considered and agreed upon by credit institutions and customers.

2. The overdue interest rate shall be agreed upon by credit institutions and customers in the credit contract but shall not exceed 150% of the lending interest rate stated in the credit contract.

Article 3.

1. This Decision shall be effective from 01 June, 2001.

2. Heads of units in the State Bank, General Managers of the State Bank branches in provinces and cities, Chairman of the Board of Directors and Directors General (Directors) of credit institutions shall be responsible for the implementation of this Decision.