SBV stops newly introduced prohibited loan purposes and needs

#Vietnamlaw #Bankinglaw #Onshorelending

Very pleased that the State Bank of Vietnam (SBV) has responded to the outcries of businesses, industry associations and the drastic directions of the Government and the Prime Minister. SBV late on the night of August 23, 2023, issued Circular 10/2023 to stop the implementation of Clause 8 (contributing capital to or buying shares of unlisted companies, contributing capital to or buying capital contribution in limited liability companies or partnership), Clause 9 (contributing capital for payment under contracts for capital contribution, business cooperation, and investment cooperation for implementation of investment project which is not eligible to be put into business) and Clause 10 (refinancing loans) of Article 8 (on prohibited lending purposes and needs) of Circular 39/2016 on lending regulations as amended by TT06/2023 which will come into effect on September 1, 2023. It is only stop the implementation meaning SBV may soon continue these clauses with certain amendments or supplements. Watch out 😀