What is duration of rediscount among credit institutions and foreign bank branches in Vietnam?

What is duration of rediscount among credit institutions and foreign bank branches in Vietnam?

Pursuant to Article 7 of Circular 18/2021/TT-NHNN regulating duration of rediscount among credit institutions and foreign bank branches is specified as follows:

1. Duration of rediscount of negotiable instruments refers to the period starting from the date on which the rediscounting party rediscounts negotiable instruments to the date on which the beneficiaries must fulfill the repurchase guarantee or the date on which the payment specified on the negotiable instrument is matured and includes both holiday and non-working day.

2. Discounting party and beneficiary shall agree on the duration of rediscount of negotiable instruments which must not exceed 12 months and not extend past the date on which the beneficiary must fulfill the obligation to sell the negotiable instruments to their customers (for cases where the beneficiary discount negotiable instruments from customers using temporary purchase) or the date on which the payment specified on the negotiable instruments is matured (for cases where the beneficiary discount negotiable instruments from customers using purchase with rights of recourse).

Best Regards!