REGULATIONS ON LENDING INTEREST RATES AND PRACTICAL APPLICATION

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF LAW -*** -THE MANAGING BOARD OF SPECIAL TRAINING PROGRAMS LE THI KHANH LINH REGULATIONS ON LENDING INTEREST RATES AND PRACTICAL APPLICATION BACHELOR THESIS Faculty of Commercial Law Course: 37 (2012-2016) HO CHI MINH CITY 2016 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF LAW -*** -THE MANAGING BOARD OF SPECIAL TRAINING PROGRAMS LE THI KHANH LINH REGULATIONS ON LENDING INTEREST RATES AND PRACTICAL APPLICATION BACHELOR THESIS Faculty of Commercial Law Course: 37 (2012-2016) Supervisor: Ph.D Ha Thi Thanh Binh Author: Le Thi Khanh Linh Student code: 1155010514 Class: CLC37B HO CHI MINH CITY 2016 ACKNOWLEDGEMENT This bachelor thesis with the topic “Regulations on lending interest rates and practical application” has been researched and written with all my efforts at University of Law First of all, I would like to sincerely want to acknowledge supports from my supervisor, Ph.D Ha Thi Thanh Binh She devoted a lot of guidelines to instruct and supervise my thesis Furthermore, I am grateful to Associate Professor, Ph.D Do Van Dai for his judgments supply on the topic Secondly, I would like to send all my love to my family owing to theirs encourages Last but not least, I am truly thankful to all of my teachers and my friends, who are beside me and help me in various ways DECLARATION I hereby declare that the thesis “Regulations on lending interest rates and practical application” is the consequence of my own study under the supervisor of Ph.D Ha Thi Thanh Binh I ensure the authenticity and the compliance with reference regulations, all of the information other than my opinions to be used or quoted has been acknowledged by means of complete references In case of infringement, I shall bear all of the responsibility Ho Chi Minh, 19 July 2015 Le Thi Khanh Linh CONTENTS DECLARATION INTRODUCTION Chapter 1.1 1.1.1 Overview of regulations on interest rates in loan agreements Some fundamental concepts Overview of loan agreements 1.1.1.1 Definition 1.1.1.2 Characteristics of a loan agreement 1.1.2 Overview of interest rates 1.1.2.1 From economic aspect 1.1.2.2 From the legal aspect 1.2 1.2.1 Characteristic of lending interest rates The interest rate in loan agreement is resulted from voluntary negotiations pursuant to laws 1.2.2 The lending interest rate is “a specific price” in comparison with other prices of goods 1.2.3 The lending interest rate always depends on the type, time limit and purpose of use 11 1.2.4 The lending interest rate is always influenced by other interest rates 11 1.2.4.1 The lending interest rate and the deposit interest rate 12 1.2.4.2 The lending interest rate and the prime/base interest rate 13 1.2.4.3 The lending interest rate and the re-financing interest rates, the re- discount interest rates 13 1.2.4.4 1.3 The lending interest rate and inter-bank offered rate 14 Factors which have effect on lending interest rates 15 1.3.1 Supply and demand 15 1.3.2 Inflation 16 1.4 Classification of interest rates 17 1.4.1 Based on the nature of the loan: 17 1.4.2 Based on the real value of the interest earned 18 1.4.3 Based on the flexibility of interest rate 19 1.4.4 Based on type of currency in lending 19 1.4.5 Based on domestic or international sources of credit 20 1.5 Regulations on interest rates 20 1.5.1 Term interest rates 20 1.5.2 Preferential interest rates 23 1.5.3 Overdue interest rates 25 1.5.4 Remedies for violations of lending interest rates 27 1.5.4.1 Civil sanction: 27 1.5.4.2 Administrative sanctions: 28 1.5.4.3 Criminal sanctions: 28 Chapter Practical apPlication of regulations on lending interest rates and some recommendations 30 2.1 2.1.1 Practical application of regulations on lending interest rates 30 Practical application of regulations on term interest rates 30 2.1.1.1 Interest rates as agreed by the parties and case where lending interest rates exceed the ceiling interest rate 30 2.1.1.2 Determination of interest rates when the borrowers fall into the state of bankruptcy 33 2.1.1.3 2.1.2 2.1.2.1 Determining a point of time to calculate interest rates 34 Practical application of regulations on preferential interest rates 36 Practical application of regulations on preferential interest rates of stipulating provision of loan for housing assistance 36 2.1.2.2 Practical application of regulations on preferential interest rates of personal installment loans 39 2.1.2.3 Practical application of regulations on preferential interest rates of other policies of State 40 2.1.3 Practical application of regulations on overdue interest rates 41 2.1.4 Practical application of regulations on sanctions for violations of lending interest rates 45 2.1.4.1 Practical application of civil sanctions: 45 2.1.4.2 Practical application of administrative sanctions: 46 2.1.4.3 Practical application of criminal sanctions 47 2.2 Some recommendations to improve effectiveness of current regulations on interest rates 48 2.2.1 Term interest rates 49 2.2.2 Preferential interest rates 50 2.2.3 Overdue interest rates 50 2.2.4 Regulations on punishment for violations of lending interest rates 51 2.2.4.1 Civil sanctions 51 2.2.4.2 Administrative sanctions 51 2.2.5 Criminal sanctions 52 CONCLUSION 54 REFERENCES APPENDIX INTRODUCTION Rational of the thesis Along with the economic development, the demand of capitals significantly increases with the purpose of business operations, as a result, the credit institutions, which play as capitals supply channel in this market, and are chosen by many organizations and individuals in lack of cash As general, the form of lending between the credit institutions and individuals, organizations are loan agreements with many provisions as agreed by both parties Lending interest rates are deemed as the most important issues in loan agreements because they affects directly to profits of each party Besides being adjusted by Civil Code 2005, the lending of the credit institutions is also adjusted by specific law So, there are some troubles occurred to the courts when making decisions in lending interest rates whether applying specific law or Civil Code Most of the credit institutions prefer applying specific law in determining lending interest rates because they would obtain more profitable interest than applying provisions prescribed in Civil Code 2005 It means that borrowers will suffer higher lending interest rates if the lenders rule to pursuant to specific law in loan agreements, which causes the conflict of interest of the borrowers and the lenders when having dispute settlements relating to deciding interest rates As regulated in Article 2.3 of the Law on the State Bank (Law No 46/2010/QH12), “The State Bank performs the state management of monetary, banking and foreign exchange (below referred to as monetary and banking) operations and performs the function of a central bank in issuing money, a bank of credit institutions and a provider of monetary services for the Government”, there are three functions of the State Bank listed in this Article, so the State Bank plays as a core to manage monetary policy to guarantee monetary security in society The management of lending interest rates is considered as an efficient tool for the State Bank to perform its functions However, the current legislation on lending interest rates still has “gaps” to fulfill in banking law field, the author decided to study this topic due to its shortcomings in legislation results in different views of courts when having lending interest rate disputes Essentially, the author would like to give out some recommendations to improve the effectiveness of current regulations on interest rates State of research affairs In general, lending interest rates, which are not new issues, has been discussed in many workshops or studied in many respects because of its important functions in the economic integration To the extent of the thesis conducted at Ho Chi Minh University of Law, there are researches on lending interest rates; “Lending interest rates disputes in loan agreements – Practical application and solutions” is the graduation thesis of Pham Le Ninh, the author Dang Thi Nga with a bachelor thesis titled “Legislation on interest rates in loan agreements” and a work titled Law on lending interest rates of the credit institutions of Pham Thi Le Ha are conducted in 2010 After that time, the thesis of Le Thi Thu Hien: “Regulations on managing interest rates of the State Bank” also did researches on interest rates; however, all works mentioned above just focus on analyzing theories of interest rates and/or discuss interest rates disputes in frame of Civil Code 2015 has not promulgated, so they are not suitable with the current situation In 2015, the thesis of Nguyen Thi Anh Tran: “Practical application of lending interest rate in credit contracts” introduced the overview of lending interest rates and some cases relating to interest rates disputes at that time However, this thesis did not update the changes of regulations on lending interest rates in draft of Civil Code 2015 and Criminal Code 2015, the thesis is merely a reference for people want to study case at that time Furthermore, there have been a lot of articles and workshops concerning this issue recently; such as some articles as follows: “Problems in the application of laws on interest rates in credit contracts and loan contracts” of Doan Duc Luong, “Applying regulations on lending interest rates appropriately in settling disputes” persuade people that it can be applied easily in practice and prevent loans at considerable interest rates when reach to loan agreements, whereas, in practical application of this provision of usury, there are many troubles to the authorities when impose this regulation in practice because: Firstly, the credit institutions are legal persons, while Penal Code 2005 is not applied to the legal persons when they have infringements rate up to the level of being adjusted by Penal Code 2005; Secondly, there is no guideline of which action is considered as having “exploitative nature” and cannot define “the maximum interest rate” is the basic interest rate or 150% of the basic interest rate or the average interest rate in inter-bank market or another rate? Last but not least, the lending activities of the credit institutions are adjusted by the specific law, under control of the State Bank, which is the reason why the credit institutions hardly make loans at an interest rates ten or more times higher than the maximum interest rate If the credit institutions make loans with higher rates than rates prescribed in Article 163.1, they will flexibly enhance fee levels to higher rates than normal rates, and the lending interest rates remained as prescribed in regulations So, it cannot blame the usury on the credit institutions because the lending interest rate performed in loan agreements is still legal in accordance with law As three reasons mentioned above, it is hardly to accuse the credit institutions of implementing usury according to Article 163 of Penal Code 2005 2.2 Some recommendations to improve effectiveness of current regulations on interest rates Loan agreements signed between credit institutions and clients are not only subject by regulations of banking law but also observed Civil Code, which can be seen that lending activities of the credit institutions is specific in management of the State because it has relationship to monetary policy and the economic security In fact, in banking field, the authorities should have unified regulations to apply in practice and have guidelines of the vague expression of provisions 48 As analysis of practical application of lending interest rates above, it cannot be denied that there are many problems of lending interest rates, so there are some recommendations to improve effectiveness of current regulations on interest rates 2.2.1 Term interest rates Generally, the loan agreements cannot be lack of term interest rate provisions, so there are many disputes relating to determine term interest rates and as analyzed in Section 2.1.1, currently, the application of term interest rates is not unified because of differences of ways to decide term interest rates in Civil Code and specific banking law As far as I am concerned, the Government should have directions to eliminate the conflict of determination of interest rates in lending activity of the credit institution; the term interest rates provisions of the loan agreements signed between the credit institutions and their clients should be only adjusted by the specific banking law - Regulations on lending by credit institutions to clients (Issued with Decision 1627-2001-QD-NHNN1) because the basic interest rate ruled in Civil Code does not perform the voluntary of loan agreements and the basic interest rate cannot be a “realistic rate” in lending because: Firstly, the credit institutions make short-term, medium-term and long-term loans, of course, the nature of each type of loan is different from the others and application interest rates imposed in each loan type have to perform the characteristics, the advantages and disadvantages when the borrowers reach a loan agreement, while the basic interest rate cannot satisfy the nature like interest rates as agreed by the parties and the basic rate is not close to the lending rates in market Secondly, the basic interest rate is not composed of other fees like business costs or interest rate of capital raise, and so forth Therefore, the basic interest rate is merely a reference rate for the credit institutions in their business The Government and other authorized organs have realized that disadvantages of existence of the basic interest rate in lending, in Civil Code 2015, there is no term “basic interest rate” anymore The elimination of the basic interest rate in Civil Code 2015 is deemed as an “obvious rule” in this economy, because it did not perform its role in lending activity, even it is a “gap” in law that the parties can use it to cause many disputes in determining interest rates when they did not duly repay principals or/and 49 interest rates One result of this is that many economic experts recommend removing the basic interest rate to make the parties feel voluntary to negotiate the lending interest rates depending on supply and demand of capitals in the economic market; if the market has fluctuations unpredictably, the State Bank will promulgate the ceiling interest rate to manage the lending One next important point in the term interest rates mentioned in Section 2.1.1.3, determining a point of time to calculate interest rates should have the unified directions with the public regulation to guarantee the rights and obligations of the parties in loan agreements 2.2.2 Preferential interest rates Loan with preferential interest rates will assist people who have financial difficulty and it also conducts the monetary policies of the State in many fields such as: agriculture, fishery, education, etc However, as noted in Section 2.1.2 of the thesis, the procedures as regulated by law are not detail, so the credit institutions can use this “gap” to ask the borrowers for additional procedures, which cause many troubles to the subjects who qualified criteria prescribed by law to receive loans at preferential interest rates In addition, when reach loan agreements at preferential interest rates, the credit institutions intentionally have vague expression in time limits applied these rates, which happened to many cases as noted above, made the borrowers feel that they were tricked with “interest rates traps” offered by the credit institutions Therefore, the legal document system should have detail guidelines in application in order to secure the rights of entities qualified criteria ruled in law and the State shall impose strict sanctions to alert the breach of application of preferential interest rate of the credit institutions 2.2.3 Overdue interest rates When reach loan agreements, the credit institutions always have terms of prevention of breach of the borrowers to offset losses, as a result of this intention, the overdue interest rates will be appeared in loan agreements Nevertheless, there is a conflict of the overdue interest rates provision in Civil Code 2005 and the Regulations on 50 lending by credit institutions to clients (Issued with Decision 1627-2001-QD-NHNN1) On the whole, the best way at current time to calculate the overdue interest rates of loan agreements should observe Article 11.2 of Regulation on lending of credit institutions to clients, it means that the overdue interest rates should not exceed 150% of the interest rates applied in loan term, because the late repayments are due to breach of the borrowers, so they have to bear the rates higher than the rates of term interest In fact, many argued that in lending activity of banking field, the overdue interest rates prescribed in Article 11.2 of Regulation should be applied instead of that of Civil Code 2005, which makes the unification in application of determination of the overdue interest rates With the promulgation of Civil Code 2015, there will be no conflict of the overdue interest rate provision in specific banking law and Civil Code In sum, currently, most of the courts have the same view of determining the overdue interest rates in loan agreements as prescribed in Regulations on lending by credit institutions to clients (Issued with Decision 1627-2001-QD-NHNN1), which is deemed as reasonable and appropriate in lending activity, while, the provision of the overdue interest rates in Civil Code 2005 cannot perform its nature is to offset damages owing to the late repayments of the borrowers 2.2.4 Regulations on punishment for violations of lending interest rates 2.2.4.1 Civil sanctions In general, the late repayment penalty is applied with different ways by the different credit institutions because of the lack of detail guidelines of the authorities As far as I am concerned, the authorities should issue a provision of the late repayment penalty in lending activities of the credit institutions to clients in order to prevent infringement of abuse of “gaps” in legislation of sanction against violation 2.2.4.2 Administrative sanctions Administrative fines are so low that the credit institutions may ignore to make loans at improper interest rates to gain illicit profits, therefore, it is necessary to increase the fine levels when the infringement in lending interest rate qualifies enough criteria 51 prescribed by Decree No.96/2014/ND-CP Penalties for administrative violations against currency and banking legal regulations dated October 17, 2014 2.2.5 Criminal sanctions The usury prescribed in Article 163 of Penal Code, as noted in Section 1.5.1.3, is hardly imposed in practice because of the reasons mentioned above Nowadays, with the promulgation of Criminal Code 2015, the first time regulates corporation legal entity that commits a criminal offence that is listed in Article 76 has to incur criminal liability59, however, Article 201 (Usury)60 is not listed in in Article 76 of Criminal Code 2015, it means that if the credit institutions offer loans at interest rates that are five times higher than the maximum interest rate specified in the Civil Code and earn illegal profits will not be hold criminal liability So, the credit institutions will never be liable for usury even though they offer loans at an interest rate that is five times higher than the maximum interest rate specified in the Civil Code and earns an illegal profit as prescribed by Criminal Law Chapter 2’s Conclusion On the basis of Chapter 1, Chapter researches the practical application of regulations on lending interest rates From this, the author suggests some recommendations for legislation on issues relating to determine lending interest rates Especially, to the extent of this Chapter, the author mainly analyzes in detail provisions on term interest rates, preferential interest rates, overdue interest rates and regulations on sanctions for violations of lending interest rates The specific points in Chapter are: (i) the conflict of determination of lending interest rates between Civil Code 2005 and banking law; (ii) the validity of legal documents relating to issue of interest rates; (iii) the vague expressions in legal documents prescribe lending interest rates 59 See Article 2.2 of Criminal Code 2015: “No corporate legal entity that commits a criminal offence that is not regulated in Article 76 hereof has to incur criminal liability” 60 See Article 201.1 of Criminal Code 2015: “Any person who offers loans at an interest rate that is five times higher than the maximum interest rate specified in the Civil Code and earns an illegal profit of from VND 30,000,000 to under VND 100,000,000 or previously incurred a civil penalty or has a previous conviction for the same offence which has not been expunged shall be liable to a fine of from VND 50,000,000 to VND 200,000,000 or face a penalty of up to 03 years' community sentence” 52 In addition, the author mentions Civil Code 2015 with regulations on determining lending interest rates, which may settle the conflict of deciding lending interest rates between specific law and Civil Code 2005 Along with theory of issues relating to lending interest rates, the author also cited some cases in the forms of judgments or loan agreements to clarify the downside of current legislation on lending interest rates and give recommendations to improve effectiveness of current regulations on interest rates 53 CONCLUSION Loans which are supplied by credit institutions are more and more common in this economic integration because of the demand of business and economic development To keep pace with the changes of society and economy, the State has to promulgate appropriate legal documents to conduct its own policies The monetary policy plays an important role in guaranteeing security of the country Interest rates in loan agreements are always received much attention from both lenders and borrowers because lending interest rates have considerably effects on their interest So, the contents of the thesis give the fundamental knowledge about interest rates in loan agreements reached by credit institutions and their clients Moreover, the author would like to clarify the shortcomings of interest rates in loan agreements based on analyzing judgments issued by courts, loan agreements signed between some credit institutions and individuals, organizations Through these judgments and contracts, the author comes to a conclusion that in current time, there is no unified regulation on adjusting lending interest rates which is the reason why determination of interest rates in practice depending on each court’s view Along with pointing out these shortcomings of regulations on lending interest rates, the author makes suggestions about altering the provisions of interest rates in Civil Code 2005 and giving guidelines on the vague Articles mentioned in Chapter and Chapter in banking law to make sure that lending interest rates are conducted in a unified way with strict manners of all credit institutions In sum, with the promulgation of Civil Code 2015, the rates of interest are prescribed more specific and realistic than these provisions in current time Finally, the author hopes that this thesis will assist anyone to obtain knowledge and practical applications of lending interest rates 54 REFERENCES A LEGISLATION Civil Code (Law No 33/2005/QH11) dated 14 June 2005 Short citation: Civil Code 2005 Civil Code (Law No 91/2015/QH13) dated November 24, 2015 Short citation: Civil Code 2015 Penal Code (Law No 15/1999/QH 10) dated December 21, 1999 Short citation: Penal Code 1999 Criminal Code (No 100/2015/QH13) dated November 27, 2015 Short citation: Criminal Code 2015 Law on the promulgation of legal documents of the national assembly (Law No 17/2008/QH12) dated June 03, 2008 Law promulgation of legislative documents (Law No 80/2015/QH1) dated June 22, 2015 Law on Credit institutions (Law No 47/2010/QH12) dated June 16, 2010 Short citation: Law on credit institutions 2010 Law on the State Bank of Vietnam (Law No 46/2010/QH12) dated June 16, 2010 Short citation: Law on the State Bank 2010 Law Commercial (Law No 36/2005/QH11) dated June 14, 2005 Short citation: Law Commercial 2005 10 Law on Bankruptcy (Law No 21/2004/QH11) dated June 15, 2004 Short citation: Law on Bankruptcy 2004 11 Law on Bankruptcy (Law No 51/2014/QH13) dated June 19, 2014 Short citation: Law on Bankruptcy 2014 12 Law on E-transactions (Law No 51/2005/QH11) dated November 29, 2005 Short citation: Law on E-transactions 2005 13 Resolution No 23/2008/QH12 on socio-economic development plan dated November 6, 2008 Short citation: Resolution No 23/2008/QH12 14 Resolution No 02/NQ-CP on a number of solutions to remove difficulties for business production, market support, handling of bad debts dated January 07, 2013 Short citation: Resolution No 02/NQ-CP 15 Decree No 96/2014/NĐ-CP penalties for administrative violations against currency and banking legal regulations dated October 17, 2014 Short citation: Decree No 96/2014/NĐ-CP 16 Decree No.67/2014/ND-CP several policies on fishery development dated July 07, 2014 amended, supplemented by Decree No.89/2015/ND-CP dated October 07, 2015 Short citation: Decree No.67/2014/ND-CP 17 Circular No 12/2010/TT-NHNN providing guidance on lending in Vietnamese dong at the agreement interest rate by credit institutions to their customers dated April 14, 2010 Short citation: Circular No 12/2010/TT-NHNN 18 Circular No 11/2013/TT-NHNN stipulating provision of loans for housing assistance according to the Government’s Resolution No 02/NQ-CP dated January 07, 2013, dated May 15, 2013 Short citation: Circular No 11/2013/TT-NHNN 19 Circular No.17/2014/TT-BXD on amendments to Circular No 07/2013/TTBXD dated May 15, 2013 and Circular No 18/2013/TT-BXD dated October 31, 2013 on guidelines for entities entitled to home loans prescribed in Resolution No 02/NQ-CP dated January 1, 2013 of the Government dated November 18, 2014 Short citation: Circular No 17/2014/TT-BXD 20 Decision No 1627/2001/QD-NHNN on issuing regulations on lending by credit institutions to clients dated December 31, 2001 Short citation: Decision No 1627/2001/QD-NHNN 21 Decision No 127/2005/QD-NHNN on the amendment, supplement of several articles of the Regulation on lending by credit institutions to customers issued in conjunction with the decision No 1627/2001/QD-NHNN dated 31 December 2001 of the Governor of the State Bank dated February 3, 2005 Short citation: Decision No 127/2005/QD-NHNN 22 Decision No.28/2002/QD-NHNN on the amendment of the Article of the Decision No 1627/2001/QD-NHNN dated 31 December, 2001 of the Governor of the State Bank on the issuance of the Regulation on lending by credit institutions to customers dated January 11, 2002 Short citation: Decision No.28/2002/QD-NHNN 23 Decision No 546/2002/QD-NHNN on the implementation of mechanism of negotiable interest rates in VND commercial credit activities of credit institutions for customers dated May 30, 2002 Short citation: Decision No 546/2002/QD-NHNN 24 Regulations on lending by credit institutions to clients (Issued with Decision 1627-2001-QD-NHNN1 of the Governor of the State Bank dated 31 December 2001) Short citation: Regulations on lending by credit institutions to clients (Issued with Decision 1627-2001-QD-NHNN1) B OTHERS 25 Pham Le Ninh (2010), Lending interest rates disputes in loan agreements – Practical application and solutions (Tranh chấp lãi suất hợp đồng tín dụng - Thực trạng giải pháp), Bachelor thesis (Khóa luận tốt nghiệp), Ho Chi Minh City University of Law 26 Dang Thi Nga (2010), Legislation on interest rates in loan agreements (Chế độ pháp lý lãi suất hợp đồng tín dụng), Bachelor thesis (Khóa luận tốt nghiệp), Ho Chi Minh City University of Law 27 Nguyen Thi Anh Tran (2015), Practical application of lending interest rate in credit contracts (Thực tiễn áp dụng quy định pháp luật lãi suất hợp đồng tín dụng), Bachelor thesis (Khóa luận tốt nghiệp), Ho Chi Minh City University of Law 28 Le Thi Thu Hien (2013), Regulations on managing interest rates of the State Bank (Pháp luật điều hành lãi suất Ngân hàng nhà nước), Bachelor thesis (Khóa luận tốt nghiệp), Ho Chi Minh City University of Law 29 Pham Thi Le Ha (2010), Law on lending interest rates of the credit institutions (Quy định pháp luật lãi suất cho vay hợp đồng tín dụng tổ chức tín dụng), Bachelor thesis (Khóa luận tốt nghiệp), Ho Chi Minh City University of Law 30 Doan Duc Luong (2013), Problems in the application of laws on interest rates in credit contracts and loan contracts (Vướng mắc áp dụng pháp luật lãi suất hợp đồng tín dụng hợp đồng vay tiền), People’s Court Magazine (Tạp chí Tịa án nhân dân), No 24/2013, page 22-24 31 Ha Noi Law University (2012), Banking law textbook (Giáo trình Luật Ngân hàng), Police Publishing House (Nhà xuất Công an nhân dân) 32 Ho Chi Minh University of Law (2014), Banking law textbook (Giáo trình Luật Ngân hàng), Hong Duc Publishing House (Nhà xuất Hồng Đức) 33 Duong Thi Binh Minh, Su Dinh Thanh (2004), Theories on monetary finance (Lý thuyết tài tiền tệ), Statistic Pulishing House (Nhà xuất thống kê) 34 Luong Khai An (2013), “Applying regulations on lending interest rates appropriately in settling disputes by courts” (volume I, volume II and the end) (Vận dụng quy định pháp luật lãi suất, giải tranh chấp tín dụng ngân hàng Tòa án) (kỳ I, kỳ II hết), People’s Court Magazine (Tạp chí Tịa án nhân dân), No 23/2013, page 22-26; No 24/2013, page 14-16 35 Quoc Tuan, “Visual check the loan agreement of 30,000 billion Vietnamese dong package” (Tận mắt xem hợp đồng tín dụng gói 30000 tỷ), Vietnamnet Newspaper (Báo Vietnamnet), http://www.tinnhanhnhadat.vn/chitiet/tan-mat-xem-hop-dong-tin-dung-cua-goi-30000-ty-9548.html, accessed on 14 May 2016 36 Expected packages with low-interest rates replace the loans for housing assistance with 30,000 billion package” (Dự kiến gói cho vay mua nhà lãi suất thấp thay gói vay 30000 tỷ), http://ebankplus.vn/du-kien-2-goi-chovay-mua-nha-lai-suat-thap-thay-the-goi-vay-30-000-ty.html, accessed on 11 July, 2016 37 Ngan Ha, “Personal installment loan with interest rate 0%” (Nở rộ vay tiêu dùng lãi suất 0%), http://kinhdoanh.vnexpress.net/tin-tuc/ebank/ngan-hang/noro-vay-tieu-dung-lai-suat-0-2762402.html, accessed on 11 July, 2016 38 “Interest rate trap when reach personal installment loan in the end of year” (“Bẫy lãi suất” vay vốn tiêu dùng cuối năm), http://ndh.vn/bay-lai-suat-khivay-von-tieu-dung-cuoi-nam-20160201083713784p149c165.news, accessed on 11 July, 2016 39 Thu Thuy, “Three things noticed when making a personal installment loan”, (Ba điều cần lưu ý vay tiêu dùng), http://plo.vn/thi-truong-tieu-dung/badieu-can-luu-y-khi-vay-tieu-dung-623093.html, accessed on 11 July, 2016 40 John Maynard Keynes, “The general theory of employment, interest and money”, https://www.marxists.org/reference/subject/economics/keynes/generaltheory/ch13.htm#1 accessed on 12 June 2016 41 John Maynard Keynes, “Alternative theories of the rate of interest”, http://www.jstor.org/stable/2225525?seq=1#page_scan_tab_contents, accessed on 12 June 2016 42 “Interest: meaning, definition and types; economics”, http://www.economicsdiscussion.net/interest-rate-theories/interest-meaningdefinition-and-types-economics/13927, accessed on 14 june 2016 43 “The borrowers will suffer more risks on interest rates in the following year” (Năm tới, người vay dễ chịu rủi ro lãi suất), http://viac.vn/tin-tuc/namtoi-nguoi-di-vay-de-chiu-rui-ro-ve-lai-suat-a568.html, accessed on 07 July 2016 44 Anh Minh, “Borrowers are trapped in personal installment loans at 80% per year” (Người vay “sập bẫy” tín dụng tiêu dung lãi suất 80% năm), http://kinhdoanh.vnexpress.net/tin-tuc/ebank/nguoi-vay-sap-bay-tin-dung-tieudung-lai-suat-80-mot-nam-3435923.html, accessed on 15 July 2016 45 Nguyen Minh Van, “Basic interest rate: being existed or not?” (Lãi suất bản: có khơng?), http://vietnamnet.vn/vn/kinh-doanh/239245/laisuat-co-ban-co-cung-nhu-khong.html, accessed on 29 May 2016 46 Bui Trang, Do Men, “Late repayment penalty by compound interest: whether banks understand properly? (Phạt lãi lãi: ngân hàng chưa hiểu đúng?), http://baodauthau.vn/phap-luat/phat-lai-tren-lai-ngan-hang-chua-hieu-dung16793.html, accessed on 03 July, 2016 47 Pham Thai, “Levels of overdue interest rates are inappropriate” (Mức lãi suất phải trả nợ hạn chưa hợp lý), https://luatminhkhue.vn/kien-thuc-luatdoanh-nghiep/muc-lai-suat-phai-tra-do-no-qua-han-chua-hop-ly.aspx, accessed on 12 June 2016 Websites: 48 www.vneconomy.vn 49 www.thesaigontimes.vn 50 www.kinhtevadubao.vn 51 www.vietstock.vn 52 www.gso.gov.vn 53 www.pso.hochiminhcity.gov.vn 54 www.ssc.gov.vn 55 http://sbv.gov.vn APPENDIX Judgment No 205/2012/KDTM-PT dated 23 July, 2012 proceed by the Court of Appeal of Supreme People’s Court in Ho Chi Minh City Judgment No 102/2006/KDTM-PT dated 06/10/2006 proceed by the Court of Appeal of Supreme People’s Court in Ho Chi Minh City Loan agreement No 2101-LAV-201500733 signed between Vietnam Export Import Bank (EXIMBANK) and the client Judgment No 140/2011/KDTM-PT dated 30 August, 2011, issued by by the Court of Appeal of Supreme People’s Court in Ho Chi Minh City Judgment No.35/2015/KDTM-ST dated 14 May, 2015 proceed by the district court in Ho Chi Minh City Judgment No 21/2013/KDTM-ST dated 23 August, 2013 proceed by the district court in Ho Chi Minh City Loan agreement No 24805/2014/HĐTD/PVB-CNHCM.KHCN signed between Vietnam Public Joint-stock Commercial Bank (PvcomBank) and their client Loan agreement No 3361/2006/HDTD-NHNA signed between Nam A Jointstock Commercial Bank (Nam A Bank) and their client ... REGULATIONS LENDING INTEREST RATES AND SOME RECOMMENDATIONS ON 2.1 Practical application of regulations on lending interest rates 2.1.1 Practical application of regulations on term interest rates. .. of regulations on lending interest rates and some recommendations 30 2.1 2.1.1 Practical application of regulations on lending interest rates 30 Practical application of regulations. .. 2.1.3 Practical application of regulations on overdue interest rates 41 2.1.4 Practical application of regulations on sanctions for violations of lending interest rates 45 2.1.4.1 Practical