To ensure relevancy with the characteristics of foreign loan transactions arising from Letter of Credit operations and to support enterprises’ payment for imported goods and services, the Governor of the State Bank of Vietnam has issued Circular 19/2024/TT-NHNN amending and supplementing a number of articles of Circular 08/2023/TT-NHNN regulating the conditions for foreign loans not guaranteed by the Government (Circular 19). Circular 19 takes effect from July 1, 2024 with some new points as follows:
(i) Supplementing regulations on foreign loans to make payments for import contracts of goods by debtors that are not credit institutions or foreign bank branches.
(ii) Recognizing the case where a bank or foreign bank branch is allowed to receive credit arising from the issuance of a Letter of Credit.
