Headlines 08/03/2019 14:07 CH

Actions for agreements on interest and interest rates under property leases greater than the prescribed limits are on the way

Đặng Thúy

This is the highlight of the Resolution No. 01/2019/NQ-HDTP providing instructions on certain provisions of laws on interest, interest rates and penalties for violations. The Resolution sets out the following regulations:

If property leases have agreements on interest rates and interest on late principal payments, interest on late interest payments greater than interest rates, interest on late principal payments and interest on late interest payments as prescribed by laws,

+ Interest rates, interest on late principal payments and interest on late interest payments that exceed the prescribed limits will not be valid; 

+ The paid amounts of interest in excess of the interest rates, interest on late principal payments or interest on late interest payments as prescribed by regulations in force will be deducted from the amounts of principal determined at the interest payment date;

+ The paid amounts of interest in excess of the prescribed limits that remain after all principal amounts have been excluded will be repaid to lessees.

In addition, the Resolution prescribes interest and interest rates agreed upon between involved parties under credit agreements must be conformable to regulations enshrined in the Law on Credit Institutions and other relevant legislative documents.

The Resolution No. 01/2019/NQ-HDTP is set to take effect on March 15, 2019.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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