Decision No. 499/QD-NHNN dated March 17, 2014, on the maximum interest rate applicable to VND deposits of entities, individuals at credit institutions, foreign bank branches under the Circular No. 08/2014/TT-NHNN

DECISION

ON THE MAXIMUM INTEREST RATE APPLICABLE TO VND DEPOSITS OF ENTITIES, INDIVIDUALS AT CREDIT INSTITUTIONS, FOREIGN BANK BRANCHES UNDER THE CIRCULAR NO. 08/2014/TT-NHNN DATED 17 MARCH 2014

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;

- Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

- Pursuant to the Decree No. 156/2013/ND-CP dated 11 November 2013 of the Government, providing for functions, duties, authorities and organizational structure of the State Bank of Vietnam;

- Pursuant to the Circular No. 08/2014/TT-NHNN dated 17 March 2014 of the Governor of the State Bank providing for the interest rate applicable to short term VND loans of credit institutions to borrowers for meeting demands of capital for several economic industries and sectors;

- Upon proposal of the Director of the Monetary Policy Department;

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Article 1. Maximum interest rate applicable to VND loans in accordance with regulations at the Circular No. 08/2014/TT-NHNN dated 17 March 2014 shall be as follows:

1. Maximum interest rate applicable to short term VND loans applied by credit institutions, foreign bank branches (excluding People’s credit funds and micro-financial institutions) shall be 8%/annum.

2. Maximum interest rate applicable to short term VND loans applied by People’s credit funds and micro-financial institutions shall be 9%/annum.

Article 2.

1. This Decision shall come into effect from 18 March 2014.

2. Loan interest rate applicable to credit contracts that are signed before the effectiveness of this Decision shall continue to be implemented according to the signed credit contracts in conformity with provisions of laws applicable at the time where the contracts are entered into.

Article 3. Director of the State Bank’s Office, Director of Monetary Policy Department, Heads of units of the State Bank of Vietnam, General Managers of State Bank's branches in provinces, cities under the Central Government’s management; Chairman of Board of Directors, Board of Members and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

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