Decision No. 1666/QD-NHNN of July 16, 2009, on the supplement of Government’s bonds in foreign currency to the list of valuable papers that are permitted to be used as a mortgage of loans in Vietnamese Dong at the State Bank of Vietnam

DECISION

ON THE SUPPLEMENT OF GOVERNMENT’S BONDS IN FOREIGN CURRENCY TO THE LIST OF VALUABLE PAPERS THAT ARE PERMITTED TO BE USED AS A MORTGAGE OF LOANS IN VIETNAMESE DONG AT THE STATE BANK OF VIETNAM

GOVERNOR OF THE STATE BANK OF VIETNAM

-Pursuant to the Law on the State Bank of Vietnam issued in 1997; the Law on the amendment, supplement of several articles of the Law on the State Bank of Vietnam issued in 2003;
- Pursuant to the Law on Credit Institutions issued in 1997; the Law on the amendment, supplement of several articles of the Law on Credit Institutions issued in 2004;
- Pursuant to the Decree No.96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;
- Pursuant to the Decision No. 211/QD-TTg dated 13 February 2009 of the Prime Minister on the issuance of Government’s bonds in foreign currency in the domestic capital market;
In consideration of the proposal by the Director of the Credit Department,

DECIDES:

Article 1. Commercial banks shall be authorized to use Government’s bonds in foreign currency issued in accordance with the Decision No. 211/QD-TTg dated 13 February 2009 of the Prime Minister on the issuance of Government’s bonds in foreign currency in the domestic capital market as a security asset for loans in Vietnamese Dong at the State Bank of Vietnam in order to support the liquidity in the event where the commercial bank has used up valuable papers of tier I and tier II in accordance with provisions in the Decision No.441/QD-NHNN dated 02 March 2009 of the Governor of the State Bank on the list, order of priority, ratio between value of valuable papers and amount of the loan secured by the mortgage of valuable papers at the State Bank of Vietnam.

Article 2. Value of Government’s bonds in foreign currency which is used as security asset for the loan in Vietnamese Dong at the State Bank of Vietnam shall be calculated at the face value. Value of the Government’s bonds in foreign currency converted into Vietnamese Dong shall be calculated at the average exchange rate in the inter-bank foreign currency market announced by the State Bank of Vietnam at the time of deciding to provide loan.

Article 3. Based on the target of managing the monetary policy from time to time, demand for capital borrowing, value of Government’s bonds in foreign currency converted into Vietnamese Dong, the State Bank of Vietnam shall determine the loan amount. Value of Government’s bonds in foreign currency converted into Vietnamese Dong which is used as security asset of the loan shall be equal to 105% of the loan amount at the minimum.

Article 4. This Decision shall be effective from the date of signing.

Article 5. Director of Administrative Department, Director of the Credit Department, Heads of units of the State Bank of Vietnam, Managers of State Bank Branches in provinces, cities under the central Government’s management, Board of Directors, General Manager (Manager) of commercial banks shall be responsible for the implementation of this Decision./.