Question 1: Our company borrows money from the bank in USD. Can we pay off the loan in VND? (Currency unit used for debt repayment is diferrent from the Currency units used for extending loans)
Answer:
Currency unit used for loan repayment is the one used in the loan. The repayment of loan in another currency shall be subject to specific agreements between the credit institution and the customer in accordance with relevant law provisions. (Applied from 01 September 2023)
Legal Base
From 01 September 2023 onwards
According to Circular No. 06/2023/TT-NHNN, amended Circular No. 39/2016/TT-NHNN prescribing lending transactions of credit institutions and foreign bank branches with customers.
3. Clause 2 Article 11 is amended as follows::
“2. Currency unit used for loan repayment is the one used in the loan. The repayment of loan in another currency shall be subject to specific agreements between the credit institution and the customer in conformity with relevant law provisions.”.
Before 01 September 2023
According to Circular 39/2016/TT-NHNN prescribing lending transactions of credit institutions and foreign bank branches with customers
Article 11. Currency units used for extending loans or repaying debts
1. Credit institutions and their customers shall agree on a loan denominated either in Vietnamese dong or another foreign currency unit as appropriate to provisions laid down herein and relevant legislation.
2. Currency unit used for loan repayment is the one used in the loan.