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New provisions of Circular 11/2022/TT-NHNN issued by the State Bank of Vietnam on bank guarantees

By 14 April, 2023No Comments

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.

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