The State Bank of Vietnam (SBV) has just fined ride-hailing firm Grab VND120 million (USD5,217) for breaking regulations on borrowing from foreign lenders.
According to the state bank, Grab broke regulations on the time required to submit applications for registering foreign short-term loans, which have been extended into medium and long-term loans where the total loan term is over one year. The regulations are based on Circular 3 issued by the SBV, dated February 26, 2016.
The SBV issued a decision to impose the fine on Grab for violating regulations in the monetary and banking sector and asked that Lim Yen Hock, representing Grab in Vietnam, be subject to the fine.
The central bank will force Grab to pay the fine in due time.
According to the circular, the borrower must send the registration file within 30 days of signing the agreement to extend a foreign short-term loan to a medium- or long-term loan.
In late 2018, Grab was also fined VND900 million (USD39,130) for operating the GrabPay service without a permit from the SBV.