Activities of Financial Leasing by General Financial Companies and Financial Leasing Companies According to Circular 26/2024/TT-NHNN
Circular 26/2024/TT-NHNN on Financial Leasing Activities of General Financial Companies and Financial Leasing Companies
On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 26/2024/TT-NHNN regulating financial leasing activities of general financial companies and financial leasing companies.
Circular 26/2024/TT-NHNN applies to the following subjects:
- General financial companies, financial leasing companies as stipulated in the Law on Credit Institutions 2024.
- Organizations and individuals involved in the financial leasing activities of general financial companies and financial leasing companies specified in Clause 1, Article 2 of Circular 26/2024/TT-NHNN.
Financial leasing activities of general financial companies and financial leasing companies under Circular 26/2024/TT-NHNN? (Image from the Internet)
What documents are required for a financial leasing application?
Based on Article 6 of Circular 26/2024/TT-NHNN, the financial leasing application dossier includes:
Financial Leasing Application Dossier
The lessee shall submit to the lessor a financial leasing application and the following documents:
Documents proving that the lessee meets the financial leasing conditions specified in Article 5 of this Circular.
Information about persons related to the lessee, including:
a) Information about persons related to the lessee subject to credit restriction as prescribed by the Law on Credit Institutions;
b) Information about persons related to the lessee as prescribed by the Law on Credit Institutions in cases where, at the time of leasing application, the lessee has a credit balance at the lessor (including the principal being applied for lease) equal to or greater than 0.5% of the lessor's equity at the close of the most recent working day. In case the lessor has negative equity, this ratio is applied to the charter capital.
- Information about persons related to the lessee specified in Clause 2 of this Article, including:
a) Information about related individuals, including: full name, personal identification number for Vietnamese citizens; nationality, passport number, date of issue, place of issue for foreigners; relationship with the lessee;
b) Information about related organizations, including: name, enterprise code, address of the head office of the enterprise, business registration certificate number or equivalent legal documents for non-enterprise organizations; legal representative, relationship with the lessee.
- The lessor shall guide the lessee to provide the information and documents specified in this Article.
Thus, the dossier for financial leasing application that the lessee submits to the lessor includes the following documents:
- Financial leasing application form
- Documents proving the lessee meets the conditions for financial leasing:
+ Information about persons related to the lessee subject to credit restriction
+ Information about persons related to the lessee in cases where, at the time of leasing application, the lessee has a credit balance at the lessor (including the principal being applied for lease) equal to or greater than 0.5% of the lessor's equity at the close of the most recent working day. In case the lessor has negative equity, this ratio is applied to the charter capital.
- Information about persons related to the lessee
What currency is used in financial leasing?
Based on Article 9 of Circular 26/2024/TT-NHNN, the currency used in financial leasing is regulated:
Currency Used in Financial Leasing
The lessor shall conduct financial leasing in Vietnamese Dong except in cases where financial leasing in foreign currency is allowed, as stipulated in Clause 2 of this Article.
Financial leasing in foreign currency must meet the following requirements:
a) The lessor makes payments for the importation of leased assets to the supplier in foreign currency; the lessee assumes the debt obligation and makes lease payments in foreign currency;
b) The lessee uses the leased assets for production and business purposes;
c) The lessee has sufficient foreign currency earnings from production and business activities to repay the financial lease.
Thus, the currency used in financial leasing is Vietnamese Dong, except in cases where financial leasing in foreign currency is permitted.
