Press release on issuance of Circular No. 19/2024/TT-NHNN
Hanoi, June 28, 2024 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 19/2024/TT-NHNN amending and supplementing a number of Articles of Circular No. 08/2023/TT-NHNN dated June 30, 2023 regulating the conditions for overseas borrowings by enterprises without the Government’s guarantee.
This Circular is composed of 3 Articles, specifically as follows: Article 1: The amended and supplemented substances as compared with Circular No. 08/2023/TT-NHNN dated June 30, 2023; Article 2: Implementation arrangements; and Article 3: Enforcement.
The issuance of Circular No. 19/2024/TT-NHNN aims at supplementing regulations related to the operation of overseas borrowings arising from the payment of the letters of credit by enterprises, credit institutions and foreign bank branches, ensuring compliance with the 2024 Law on Credit Institutions, and other relevant provisions of laws.
A number of regulations on the management of borrowings and repayment of overseas loans have been adjusted in order to ensure consistency with the specific characteristics of overseas borrowing transactions in the L/C operations.
The new Circular takes effect concurrently with the effectiveness of the 2024 Law on Credit Institutions, and the guiding documents of the SBV related to the Letter of Credit operations, providing guidance to enterprises and credit institutions in their implementation of the Letter of Credit operations.
This new Circular takes effect from July 1, 2024.
Translated by HY