Circular 11 was issued by the State Bank, took effect from April 1, 2023, replacing Circular 07/2015/TT-NHNN and Circular 13/2017/TT-NHNN on bank guarantees.
Circular 11 introduces a number of new regulations on bank guarantees in general and on off-plan housing guarantees in particular, such as:
1. Regarding bank guarantees: Circular 11 provides new regulations on the form of electronic guarantee letters and cases in which enterprises are not granted guarantees for bond payment obligations;
2. Regarding guarantee for off-plan housing: Circular 11 amends and supplements a number of regulations related to:
– Criteria for determining the capacity of commercial banks when providing guarantees for off-plan housing;
– Issuance procedures of guarantees for off-plan housing;
– Validity period and required content of the Contract of Guarantee for off-plan housing;
– Validity period and required content of the Letter of Guarantee for off-plan housing.