On July 3, 2019, the State Bank issued Circular No. 07/2019 / TT-NHNN regulating safety limits and ratios in the operation of Vietnam Development Bank effective on 01 January, 2020.
Accordingly, Circular No. 07/2019 / TT-NHNN has the following outstanding contents:
– The total credit balance of Vietnam Development Bank (including State investment credit) calculated on the equity of Vietnam Development Bank must not exceed 15% for a customer , must not exceed 25% for a customer and related person, except for special projects decided by the Prime Minister.
– The total outstanding credit balance mentioned above includes the total loan balance of investment credit, export credit; outstanding loans for ODA loans; outstanding loans of other credit-granting operations of Vietnam Development Bank; guarantee balance and balance of entrusted loans for credit institutions, other foreign bank branches (including outstanding loans transferred to off-balance sheet accounting).
Thus, Circular No. 07/2019 / TT-NHNN stipulates limited details to ensure that enterprises, financially autonomous non-business units and other economic organizations use a sum of money or commit to the use of a sum of money on the principle of repayment by lending, guarantee and other credit operations according to the provisions of law.