What are regulations on the time for determining the repayment currency in cases where customers borrow in foreign currency in Vietnam?
In some cases, when credit institutions or branches of foreign banks in Vietnam lend to customers who are residents and borrow in foreign currency, what are regulations on detemination of the repayment currency?
(nguyet_that****@gmail.com)
What are regulations on the time for determining the repayment currency in cases where customers borrow in foreign currency in Vietnam? - image from internet
Pursuant to Clause 2 Article 1 of the Circular 24/2015/TT-NHNN stipulating currency used for loan repayment:
1. As for the foreign currency loans which borrower have sufficient foreign currency revenues to repay before signing the credit contract or the loan agreement:
a. Borrowers shall pay the loan principal and interest in the currency that they borrow; in case where borrowers repay debts by using another foreign currency, they shall be bound to the agreement between the credit institutions, foreign branch banks and borrowers in conformity with relevant laws.
b. On the due date of the loan, if the borrower is able to prove that their late repayment in foreign currency is caused by unexpected events, such as the borrower's deferred collection of operating revenues or the borrower does not have sufficient foreign currency to repay the loan, the borrower may buy the foreign currency from the lender or from another credit institution or FBB to repay such loan.
If the borrower needs to buy the foreign currency from the lender, the lender must sell the foreign currency to the borrower. If the borrower buys the foreign currency from another credit institution or FBB, the requested credit institution or FBB shall transfer the foreign currency to the lender.
If the borrower earns foreign currency from their business operation, they shall resell such foreign currency back to the lender.
2. As for the foreign currency loans which borrower does not have sufficient foreign currency revenues to repay before signing the credit contract or the loan agreement: the borrower may buy the foreign currency from the lender of from another credit institution or FBB to repay such loans.
If the borrower wishes to buy foreign currency from the lender, the lender shall sell the foreign currency to the aforesaid borrower. If the borrower buys the foreign currency from another credit institution or FBB, the requested credit institution or FBB shall transfer the foreign currency to the lender.
=> Therefore, there are two timing options to determine the repayment currency when customers who are residents borrow in foreign currency.
Best regards!
