Question 1: Our company borrowed money from a bank in USD. When repaying the loan, are we allowed to repay in VND (i.e., using a currency different from the loan currency)?
Answer:
The repayment currency is the same as the loan currency. If repayment is made in a different currency, it must follow the agreement between the credit institution and the customer, in accordance with relevant legal regulations.
(Effective from September 1, 2023)
Legal Basis:
From September 1, 2023
Under Circular No. 06/2023/TT-NHNN amending Circular No. 39/2016/TT-NHNN on lending activities by credit institutions and foreign bank branches to customers:
3. Article 11, Clause 2 (as amended):
2. The repayment currency is the loan currency. In cases of repayment in another currency, it must comply with the agreement between the credit institution and the customer, in accordance with relevant legal regulations.
Before September 1, 2023
Under Circular No. 39/2016/TT-NHNN on lending activities by credit institutions and foreign bank branches to customers:
Article 11. Loan and repayment currencies
1. The credit institution and the customer shall agree on loans in VND or foreign currencies in accordance with this Circular and other applicable laws.
2. The repayment currency is the loan currency.
