Vietnam: Amending requirements for customers to be guaranteed by credit institutions

15:52, 18/10/2017

On September 29, 2017, the State Bank of Vietnam issued Circular No. 13/2017/TT-NHNN to provide amendments to Circular No. 07/2015/TT-NHNN on Bank Guarantee.

According to Vietnam’s new regulation, credit institutions, or foreign bank branches, shall consider and decide issuance of the guarantee, counter guarantee or guarantee confirmation to customers as long as customers meet the following requirements:

- Have the full capacity to have civil rights or the full capacity to act on those civil rights in accordance with laws.

- Guaranteed financial obligations must be legal, except guaranteed payment obligations for bonds issued by enterprises for debt restructuring purpose and those issued by subsidiaries or affiliates of other credit institutions.

- Obtain the assessment which proves that they have capability of repaying sums that credit institutions or foreign bank branches giving guarantees have paid to fulfill the financial obligations in favor of them.

View relevant provisions at Circular No. 13/2017/TT-NHNN of the State Bank of Vietnam, effective from November 15, 2017.

- Thanh Lam -

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