Under Circular 07/2016/TT-NHNN, credit institutions and branches of foreign banks can resume providing short-term loans in foreign currency to exporting companies which have enough foreign money from their export activities to pay off.
According to the central bank, the circular, which is effective until December 31, 2016, is designed to stimulate the economy, which saw a slowdown in the first months of the year compared with the same period of 2015.
Vietnam’s economy was also hurt by severe drought in the south central and Central Highlands regions, drought and saltwater intrusion in the Mekong Delta, as well as fish die-off in a number of central provinces, which affected the fishing and tourism industries.
The circular is in line with the government’s efforts to remove obstacles to enterprises in order to achieve the growth rate of 6.7%.
The policy adjustment was made as the difficulties that arose had not been anticipated in the foreign currency policy at the end of 2015.
Source: nhandan.com.vn