The interest rates of bonds issued by credit institutions must comply with regulations of the Law on Securities of Vietnam

14:50, 02/01/2020

This content is newly specified in Circular No. 33/2019/TT-NHNN of the State Bank of Vietnam on amendments to Circular No. 34/2013/TT-NHNN dated December 31, 2013 of the Governor of the State Bank of Vietnam on domestic issuance of promissory notes, treasury bills, deposit certificates and bonds by credit institutions and foreign bank branches.

According to Article 11 of Circular No. 34/2013/TT-NHNN amended by Clause 1 Article 1 of Circular No. 33/2019/TT-NHNN of the State Bank of Vietnam (SBV), the interest rates of financial instruments issued by credit institutions or foreign bank branches shall be conformable with regulations on interest rates adopted by SBV in each period. The interest rates of bonds must also comply with regulations of the Law on Securities, Decree No. 163/2018/ND-CP, and legal documents elaborating the Law on Securities.

Circular No. 33/2019/TT-NHNN also stipulates that methods of calculation of interests on financial instruments shall comply with SBV’s regulations.

Besides, Circular No. 33/2019/TT-NHNN also amends regulations on payment of financial instruments of credit institutions and foreign bank branches, to be specific, methods of payment of principal and interest on a financial instrument shall be decided by the credit institution or foreign bank branch in conformity with relevant laws and must be informed to buyers before issuing the financial instrument.

Moreover, the payment of the financial instrument before maturity date shall be decided by the credit institution or foreign bank branch at the request of the buyer in a manner that ensures its maintenance of prudential ratios. The interest rate applied in the case of payment of the financial instrument before maturity shall comply with SBV’s regulations.

View full text at Circular No. 33/2019/TT-NHNN of the State Bank of Vietnam, effective from February 19, 2020.

Thu Ba

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