Construction of Hà Nội’s Ring Road No. 2.5 being hastened. Major and important projects in Hà Nội could be eligible to seek credit of up to 52 per cent of a commercial bank's or foreign bank branch's equity. — VNA/VNS Photo Lê Đông

HÀ NỘI — Major and important projects in Hà Nội could be eligible to seek credit of up to 52 per cent of a commercial bank's or foreign bank branch's equity, according to a draft recently made public for comments by the State Bank of Vietnam.

The draft sets out conditions, documentation and procedures for applying and approving credit limits above the statutory thresholds for major and important projects in Hà Nội, as part of the effort to implement the National Assembly’s Resolution 258/2025/QH15 on piloting special mechanisms and policies for major and important projects in the capital city.

Accordingly, credit limit to a single borrower will be up to 38 per cent, while credit to a borrower and related parties will be up to 52 per cent of a bank's equity for approved major and important projects in Hà Nội.

The 52 per cent threshold is a maximum level that may be proposed for approval and does not mean banks would automatically extend credit at that level, according to the draft. Both the borrower and project, as well as the lender, will have to meet regulatory requirements for credit higher than the normal limit.

Under the proposed procedure, once receiving a complete and valid application, the SBV will seek written opinions from relevant ministries, agencies and local authorities within five working days on the project's economic, technical and legal aspects, as well as the proposed lending plan and borrower.

The relevant ministries, agencies and local authorities will have five working days to provide their written opinions.

Based on those responses, the SBV might ask the lender or borrower to clarify issues related to the application. The SBV will then have 17 working days after receiving the opinions or explanations to assess whether the application meets requirements.

If all requirements are met, the Governor of the SBV would consider and decide whether to approve the proposed credit limit above the statutory threshold.

The draft circular is expected to take effect this year and remain in force until Resolution 258/2025/QH15 expires.

Under the resolution, the SBV’s governor is tasked with considering and deciding on credit limits above the statutory thresholds for major and important projects in Hà Nội. — VNS