In the context of ongoing economic challenges and to further prioritize economic growth promotion, on August 23, 2023, the State Bank issued Circular No. 10/2023/TT-NHNN ("Circular 10") to suspend the enforcement of certain provisions of Circular No. 39/2016/TT-NHNN (as amended and supplemented by Circular No. 06/2023/TT-NHNN). Specifically, from September 1, 2023, until the effective date of a new legal document, the provisions prohibiting credit institutions from lending for the following purposes will be suspended:
a. To pay for capital contribution, purchase, and receive the transfer of contributed capital, shares that are not listed on the stock market or not registered for trading on the Upcom trading system.
b. To pay for capital contribution under capital contribution contracts, investment cooperation contracts, or business cooperation contracts to implement investment projects that do not meet the conditions for conducting business at the time the credit institution decides to lend.
c. To compensate for finance, unless the loans fully meet the conditions that the borrower has advanced payment and paid the costs of project implementation as prescribed.
The suspension of the above provisions is considered a necessary measure to address difficulties and create favorable conditions for businesses to access credit, especially real estate enterprises when implementing a business project establishment model to carry out investment activities.
Circular 10 is effective from September 1, 2023.
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