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||18 December 2009
Vietnam: Exporters allowed to borrow dollar loans
The State Bank of Vietnam has signed a circular which allows exporters to borrow US dollars at banks, reported VNBusinessNews.com.
The new circular supplements the needs which justify dollar loans from banks to fund investment projects, business projects, goods trading and export services. However, if enterprises borrow dollars for use in the country, they must sell dollars to lenders who offer the loans, says the document.
That means that if enterprises want to borrow dollars at low lending rates, about 7 percent per year compared to 12 percent for Vietnam dong, they must sell back to lenders to take Vietnam dong capital for payment purposes in the country. For dollar demand which is not regulated in the circular, borrowers must have approval from the governor before borrowing dollars.
According to a statement on the central bank’s website, the supplement aims to balance supply and demand of US dollars to suit the Government’s policy to stabilize the foreign exchange market.
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