Gold mobilisation and lending stops by May Day

The State Bank of Vietnam (SBV) released circular No.11 on April 29 to stop credit institutions mobilising and lending by gold.

According to the circular, they will not be allowed to lend gold to customers and other credit institutions even if the credit contract has already been signed and not totally disbursed. They are also prohibited to conduct investment and credit business in gold.

If the amount of gold in their stores and collected from debts is not sufficient to pay their customers, credit institutions are forbidden to mobilise gold, except for short term credit that will be collected by May Day 2012.

They will also not be allowed to change their gold they have already collected into Vietnam Dong or other kinds of currency. All procedures for gold that has already been changed into a specific currency must be completed before June 30.

Credit institutions have to send periodical reports on their gold stores and lending and provide relevant information if requested by the SBV.

SBV branches in provinces and cities are in charge of inspecting and controlling the gold stores and lending of local credit institutions and handling any violations. They are also asked to report any difficulties in implementing the circular to the governor of the SBV. – VOV

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