Vietnam: When shall the commercial bank consider issuing guarantee to the investor?

15:48, 20/11/2017

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 Circular No. 13/2017/TT-NHNN of the State Bank of Vietnam, a commercial bank shall consider issuing guarantee to the investor when:

- The investor has satisfied all of requirements stated in Article 10 herein;

- The investor's project has satisfied all of the requirements for off-plan property to be put on the market as prescribed in Article 55 of the Law on Real Estate Business.

Besides, the determination of the balance of guarantee is also amended as follows:

- The balance of guarantee for the investor is total amount which the investor has received from purchasers according to the agreed-upon schedule before the date of houses being transferred to purchasers and gradually reduced until guarantee obligations to purchasers are terminated;

- The commercial bank and the investor shall agree upon the time of notification of total amount paid by purchasers provided that at least a notification must be given at the ending date of each month so as to determine the balance of guarantee.

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

- Thanh Lam -

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