An Giang court declares 105,000 USD loan invalid

The An Giang Provincial People's Court recently ruled a long-standing debt dispute between two individuals invalid due to violations of foreign exchange management regulations. The case involved a series of loans made between November 2013 and June 2014, involving various currencies including USD and CAD.

The parties had eventually settled on a total debt of 105,000 USD. A dispute arose over whether payments made by the borrower—totaling approximately 1.7583 billion VND—were intended to cover interest or the principal amount. While the lender claimed the payments were primarily interest, the borrower argued they were principal repayments, noting that no interest rate had been formally agreed upon.

Ultimately, because the loan agreement was denominated in foreign currency in violation of local regulations, the court declared the transaction invalid.