This edition of Asia Counsel Insights has news on new regulations on bank guarantees, 100 per cent foreign ownership in certain public companies and new private placement rules.

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Banking Wrap 

New Regulation on Bank Guarantees

On 25 June 2015, the State Bank of Vietnam issued Circular 07/2015/TTNHNN on bank guarantees. Circular 07 takes effect on 9 August 2015.
Circular 07:

  • provides additional requirements for guarantees to non-residents but also allows certain exemptions for guarantees to foreign credit institutions.
  • regulates the giving of guarantees for residential development projects including specific wording in the sale and purchase contracts and sets expiry of guarantee on 30 days after handover of property.
  • regulates the form of guarantee, guarantee fees and the rights and obligations of the guarantor and guaranteeing bank.

Please click Asia Counsel Insights 1 July 2015 for more information.

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