State Bank bans lending towards gold buying

The State Bank of Vietnam on Saturday decided to ban banks and credit institutions to provide loans for gold purchases, except for cases allowed by the State Bank.

The ban takes effect on Oct. 10, 2011, the central bank announced on its website Saturday.

The new circular states that the risk coefficient for gold-guaranteed loans is up to 250 per cent.

Exceptions to the ban include loans approved by the State Bank Governor for gold purchases to make gold bars and jewelry, as well as to import gold as material under import licenses.

As for the credit agreements signed and taking effect before Oct. 10, 2011, the credit providers and customers continue to perform the deals.

The State Bank said on its website that the ban is another bid to help stabilize the gold market. – SGGP

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Oct 10 2011. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry