State Bank says no to negotiable-interest loans

The Sate Bank of Vietnam had told credit organizations not to release negotiable-interest loans to customers investing in real estate and financial assets like gold, foreign currencies and stocks.

The State Bank Governor, Nguyen Van Giau, dispatched the new regulations to credit organizations and the bank’s subsidiaries in provinces and cities on November 12.

Accordingly, credit organizations are only allowed to apply negotiable interests to loans serving the lives of customers, as well as their households. The loans will be released through credit cards.

For cases not matching negotiable-interest regulations, the Governor asked credit organizations to adjust such situations by March 31, 2010.

By B.Minh – Translated by Hong Ha

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