Credit institutions allowed to provide short term loans to import petroleum

The State Bank of Vietnam (SBV) on May 2, 2012 issued a Dispatch No 2650/NHNN-CSTT stipulating lending in foreign currency of credit institutions and branches of foreign banks for importing petroleum.

Accordingly, if petroleum wholesalers who received petroleum import quota for 2012 from the Ministry of Industry and Trade (MoIT) in need of foreign currency to pay overseas for imports of petroleum do not have or lack foreign currency, credit institutions and branches of foreign banks will consider to lend foreign currency in short terms in accordance with the regulation of Circular No 03/2012/TT-NHNN.

The lending to these borrowers will be implemented till the end of December 31, 2012.

The central bank requested credit institutions and branches of foreign banks to carry out short term lending in foreign currency to oil and gas wholesalers in line with the Circular No 03/2012/TT-NHNN and the law on foreign currency management and other related regulations to ensure the recovery of principal and interest on due.

Credit institutions and branches of foreign banks wishing to lend for overseas payment for petroleum imports can send registration document to the central bank.

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