On May 29, 2018, the State Bank issued Circular No.14/2018/TT-NHNN guiding the implementation of several measures of the monetary policy management in order to support the credit institutions, the foreign bank branches to provide loans for agricultural and rural development. This Circular took effect since July 13, 2018.
Accordingly, Circular No.14/2018/TT-NHNN stipulates measures to support credit institutions to provide loans for agricultural and rural development as follows:
1. Credit institutions that provide loans for agricultural and rural development will receive refinancing support in line with applicable regulations on refinancing credit institutions.
2. Those credit institutions will receive support in terms of reserve requirement ratios, particularly:
– Lower reserve requirement ratios applied to the deposits in Vietnamdong as compared to the reserve requirements regulated by the State Bank in relation to each category of credit institutions in different periods:
– For credit institutions with the average credit ratios for agricultural and rural areas of 40% or higher, but without the need to apply the reserve requirement ratio support, the regulations of reserve requirements in this Circular should not apply.
With clear and specific regulations, Circular No.14/2018 / TT-NHNN has created favorable conditions for credit institutions to well implement the policies of the Party and the State, thereby supporting the development of agriculture, ensuring the livelihood of farmers.