What are rediscount price, repurchase price of negotiable instruments, and rediscount interest rate among credit institutions and foreign bank branches in Vietnam?

What are rediscount price, repurchase price of negotiable instruments, and rediscount interest rate among credit institutions and foreign bank branches in Vietnam?

Pursuant to Article 8 of Circular 18/2021/TT-NHNN regulating rediscount price, repurchase price of negotiable instruments, and rediscount interest rate among credit institutions and foreign bank branches are regulated as follows:

1. Rediscount price of negotiable instruments means the amount of money paid for the beneficiary by the rediscounting party when rediscounting negotiable instruments.

2. Repurchase price of negotiable instruments means the amount of money paid for the rediscounting party by the beneficiary when repurchasing the negotiable instruments following temporary purchase method.

3. Credit institutions and FBBs shall agree on rediscount price, repurchase price of negotiable instruments, rediscount interest rate, and interest rate applied to the money that passes its maturity date, and other legitimate costs relating to discounting of negotiable instruments as per the law.

Best Regards!