DECISION

ON THE LEVEL OF LENDING WITHOUT ASSET SECURITY FOR STATE-OWNED BANKS, BRANCHES OF FOREIGN BANKS IN VIETNAM, FINANCE COMPANIES OF THE STATE-OWNED GENERAL CORPORATIONS AND THE BANK FOR THE POOR.

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated 12 December, 1997;
Pursuant to the Decree No. 15/CP dated2 March 1993 of the Government providing for the assignment, authority and responsibility for State management of the ministries and ministerial-level agencies;
Pursuant to paragraph 2 Article21 of the Decree No. 178/1999/ND-CP of the Government dated 29 December 1999 on the loan security of credit institutions;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1. The stipulations of the level of the outstanding lending balance without asset security.

1. The Chairman of the Board of Directors of the Bank for Agriculture and Rural Development of Vietnam, the Industrial and Commercial Bank of Vietnam, the Bank for Foreign Trade of Vietnam, the Investment and Development Bank of Vietnam the Bank for the Housing Development in Mekong Delta (hereinafter referred to as stated-owned Banks); (General Director) Director of Finance Companies instate-owned General Corporations, General Managers of Foreign Bank branches in Vietnam shall decide on the level of the outstanding lending balance without asset security to borrowing customers and be responsible for their decisions.

2. The Bank for Poor shall lend to poor individual, family households without asset security in accordance with applicable provisions of the Decision No. 525/TTg dated 31 August, 1995 of the Prime Minister on the establishment of the Bank for the Poor or lend with the guarantee by pledge of trust of social organizations, socio-political organizations at the local level in accordance with applicable provisions of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on the loan security of credit institutions and the State Bank' s Circular guiding the implementation of this Decree.

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1. The level of outstanding lending balances without asset security for a credit institution as provided for in paragraph 1 Article 1 of this Decision shall be calculated on the basis of the total outstanding lending balance of that credit institutions which does not include the outstanding balance without asset security extended under instruction of the Government and outstanding balance without asset security extended to subjects provided for in the Decision No.67/1999/QD-TTg dated 30 March, 1999 of the Prime Minister on some banking credit policies for the rural and agricultural development.

2. The level of outstanding lending balance without asset security for a credit institution provided for in Article 1 of this Decision shall be applied to credit contracts entered into from the affective date of this Decision.

Article 3. Responsibility of credit institutions upon lending without asset security

State-owned Banks, branches of foreign banks in Vietnam and Financial companies of stated-owned General Corporations shall decide and perform the lending without asset security to borrowing customers on the basis of ensuring the safety of credit activities, compliance with the lending without assets security provided for in Articles 19, 20 and 21 of the Decree No.178/1999/ND-CP dated 29/12/1999 of the Government on the loan security of credit institutions, the State Bank's Circular guiding the implementation of this Decree and other related provisions of the Government.

Article 4. Implementing Provisions

1. This Decision shall be effective after 15days from the date of signing.

2. The Chief Inspector of the State Bank to examine the compliance with this Decision, to take the lead in cooperation with Directors of the Banks and non-bank credit institutions to submit to the Governor of the State Bank the provision for the level of the out standing lending balance without asset security for credit institutions from time to time, on the basis of their assessment of their business quality.

3. The Heads of the State Bank units, the Managers of the State Bank branches in provinces, cities under the central management, the Chairpersons, General Directors (Directors) of the state-owned Banks, branches of foreign banks in Vietnam, Finance Companies of the state-owned General Corporations and the Bank for the Poor shall be responsible for the implementation of this Decision.

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THE GOVERNOR OF THE STATE BANK





Le Duc Thuy