|
THE
STATE BANK
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
------------
|
|
No:
286/2002/QD-NHNN
|
Hanoi,
April 03, 2002
|
DECISION
ISSUING THE REGULATION ON CO-FINANCING BY CREDIT
INSTITUTIONS
THE STATE BANK GOVERNOR
Pursuant to the Law on the State Bank of
Vietnam and the Law on Credit Institutions of December 12, 1997;
Pursuant to the Government’s Decree No. 15/CP of March 2, 1993 on the tasks,
powers and State management responsibilities of the ministries and ministerial-level
agencies;
At the proposal of the director of the Credit Department,
DECIDES:
Article 1.- To issue
together with this Decision the Regulation on co-financing by credit
institutions.
Article 2.- This
Decision takes effect 15 days after its signing and replaces the State Bank
Governor’s Decision No. 154/1998/QD-NHNN14 of April 29, 1998 issuing the
Regulation on co-financing by credit institutions.
Article 3.- The director
of the Office, the director of the Credit Department, the heads of the units under
the State Bank, the directors of the State Bank’s branches in the provinces and
centrally-run cities, the chairmen of the Managing Boards and the general
directors (directors) of credit institutions shall have to implement this
Decision.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Nguyen Van Giau
REGULATION
ON CO-FINANCING BY CREDIT INSTITUTIONS
(Issued together with Decision No. 286/2002/QD-NHNN of April 3, 2002 of the
State Bank Governor)
I. GENERAL PROVISIONS
Article 1.- Scope of regulation
This Regulation governs the co-financing by
credit institutions for part or the whole of a production, business, service,
development investment or livelihood project or plan (hereinafter referred to
as a project for short) in order to raise the capacity and efficiency of
production and business activities of the financed parties and credit
institutions.
Article 2.- Interpretation
of terms
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. Co-financing is the process of organizing the
granting of credit by the co-financing parties with the participation of two or
more credit institutions, with one of them acting as the coordinator, for part
or the whole of a production, business, service, development investment or
livelihood project or plan.
2. Co-financing parties are two or more credit
institutions jointly committing to and coordinating with one another in
co-financing the financed parties according to the provisions of this
Regulation.
3. Members are credit institutions or their
branches authorized by the credit institutions�
general directors (directors) to accept to participate in granting credit in
specific forms to co-finance a project.
4. Co-financing coordinating organization is one
of the member credit institutions, which is unanimously selected by the other
members on the basis of its capacity and assigned to coordinate the
organization of the co-financing. The central people�s credit fund and financial companies of
corporations shall not be allowed to act as the co-financing coordinating
organization.
5. Credit-granting coordinating member must be a
member capable of performing related specific operations of the credit-granting
form assigned to it for coordination, including:
5.1. Syndicated loan-provision coordinating
member: being a member unanimously selected by the members participating in the
syndicated loan provision and assigned to coordinate the organization of the
syndicated loan provision.
5.2. Co-guaranty coordinating member: being a
member unanimously selected by the members participating in the guaranty and
assigned to coordinate the organization of co-guaranty.
6. Payment coordinating organization must be a
credit institution licensed to provide payment services and is unanimously
selected by the other participating members and assigned to provide payment
services in the co-financing.
7. Financed parties are legal persons, private
enterprises, cooperation groups, households, partnerships or individuals that
need credit and are granted credit by the co-financing parties according to the
provisions of this Regulation for carrying out projects.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
9. Credit-granting contract for co-financing is
a written commitment between the co-financing parties (group of members or
individual members) and the co-financed parties in exercising the rights and
fulfilling the obligations of each party and each member in lending or guaranty
relations for carrying out co-financed projects. Credit-granting contracts for
co-financing include lending contracts, syndicated loan-providing contracts,
guaranty contracts, and co-guaranty contracts.
Article 3.- Cases of
application of co-financing
1. The financed party’s need for credit for a
project exceeds the currently prescribed lending or guaranty limit of credit
institutions;
2. The financial capability and capital source
of a single credit institution fails to meet the project’s need for credit;
3. Credit institutions need to distribute risks;
4. The financed party needs to mobilize capital
from different credit institutions.
Article 4.- Organizations
eligible for participating in co-financing
Organizations eligible for participating in
co-financing are credit institutions established and operating under the Law on
Credit Institutions and their authorized branches. Grassroots people’s credit funds
shall not be allowed to participate in co-financing.
Article 5.- Credit-granting
forms for co-financing
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Guaranty, co-guaranty;
3. Combination of the above forms.
The use of other credit-granting forms in co-financing
shall be prescribed by the State Bank Governor.
Article 6.- Currency
used in co-financing
The currency used in co-financing is Vietnam
dong or a foreign currency suitable for the project’s need and compliant with
the relevant regulations on credit granting and foreign exchange management.
Article 7.- Principles
for organization of co-financing
1. The members volunteer to participate and
coordinate with one another in co-financing.
2. The members unanimously select a
credit-granting coordinating organization and member, and a
payment-coordinating member for co-financing.
3. The credit-granting form and transaction mode
between the co-financing parties and financed parties must be agreed upon by
the members and inscribed in the co-financing contract.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
The concerned co-financing parties must, apart
from complying with the co-financing regulations, observe the following:
1. The credit granting in each specific form and
the application of security measures in the co-financing process must comply
with the State Bank Governor’s regulations and other relevant law provisions.
2. Co-financing members must reach unanimous
agreement on the project evaluation method and may decide to or not to set up
an evaluation council (composed of members from the co-financing credit
institutions), if not, must secure the consent among the members on the
project’s feasibility, create conditions for granting credit in a convenient
and lawful manner.
3. The rights and obligations of the co-financing
parties and the financed parties shall be exercised and fulfilled corresponding
to each credit-granting form according to the regulations of the State Bank
Governor.
4. The co-financing parties must regularly
inspect and supervise the use of financing sources for the project as agreed
upon in the co-financing contract and the credit-granting contract and
coordinate with the financed party in dealing with any arising matters.
Article 9.- Interests
and charges in co-financing
1. The co-financing members shall collect
interests and assorted charges according to the provisions of law.
2. Expenses incurred in the co-financing process
shall be agreed upon by the co-financing members, inscribed in the co-financing
contracts, and covered by the interests and assorted charges collected from the
customers.
II. SPECIFIC PROVISIONS
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. After receiving dossiers of application for
credit as prescribed for each credit-granting form from the customers, credit
institutions shall preliminarily evaluate the dossiers, assessing the
feasibility of the projects seeking for loans.
2. Immediately after preliminarily evaluating
the dossiers, if finding that the projects are feasible and need co-financing,
the credit institutions which have received the dossiers shall project those
credit institutions for participation in co-financing and send them the letters
of invitation for co-financing enclosed with the preliminary evaluation
results. If projects are infeasible, the credit institutions shall issue
written replies to the customers, clearly stating the reasons for refusal to
grant credit.
3. Letters of invitation for co-financing must
include the project’s principal details (the project title, investor’s name,
total investment capital, the need of co-financing for project execution,
lending and repayment time, guaranty duration, estimated interest rate,
charges, and the project’s debt repayment plan) and basic information on the
proposal for participation in co-financing, the mode of participation in
co-financing, co-financing duration, interest rate, assorted charges related to
the project’s co-financing.
Article 11.- Co-financing
coordination
1. Credit institutions invited to participate in
co-financing shall base themselves on the co-financing proposals of the
inviting credit institutions and enclosed documents, the capacity of their
capital sources and current law provisions to decide whether or not to
participate in co-financing and must respond to such proposals in writing.
2. If the co-financing proposal is accepted and
fully meets the credit need of the financed parties, the co-financing inviting
credit institutions shall reply to the financed parties on the acceptance of
co-financing. The concerned parties shall have to reach agreement upon and
carry out the co-financing contents.
3. Where the co-financing proposal is accepted
but not enough for the credit need of the financed parties, the co-financing
inviting credit institutions shall:
a/ Re-consider the possibility to grant credit
to the co-financed parties in accordance with the law provisions and their
capabilities in terms of finance, capital source and assets.
b/ If the credit institution which has received
the dossier is unable to grant credit unilaterally, it shall notify the
financed party of its inability to lend or guarantee, even in the co-financing
form and clearly state the reasons therefor.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. The invitation for co-financing may be
effected in other forms but the members approval must be made and sent in
writing.
Article 12.- Evaluation
of co-financed projects
1. The co-financing parties shall together
select and agree on the mode of evaluating the projects; the original
evaluation dossiers must be filed at the co-financing coordinating
organizations and the evaluation results must be sent to the members and filed
at the co-financing coordinating organizations.
2. The evaluation results must include all
substantial information on the project, the co-financed party’s financial
capability and its ability to fulfill obligations toward the co-financing
parties.
Article 13.- Co-financing
contracts
1. A co-financing contract should contain the
following principal particulars:
1.1. Co-financing members.
1.2. The co-financing coordinating organization.
1.3. The credit-granting coordinating member.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.5. The project evaluation mode and results.
1.6. The credit-granting form.
1.7. Co-financing content:
a/ The total co-financing amount divided by each
credit-granting form and by each co-financing member.
b/ Concrete agreements on co-financing charge.
c/ The principal details of each credit-granting
form as prescribed by law, specifically:
- Lending, provision of syndicated loans:
Syndicated loan-provision coordinating member, participating credit
institutions, type and mode of lending, loan amount and term, interest rate,
loan security measures, capital (both principal and interest) recovery mode and
other details according to the State Bank Governor’s regulations on lending.
- Guaranty and co-guaranty: Co-guaranty
coordinating member, participating credit institutions, type of guaranty, the
value of the guaranty obligation, the guaranty duration, guaranty charge, and
other details according to the State Bank Governor’s regulations on guaranty.
1.8. Payment security (if any): Payment
coordinator, financing mode, debt collection, payment of charges and interests
by the financed parties and among the co-financing participating members.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.10. Credit-granting security: The security
form, the method of valuing the assets as loan security, credit-granting
security contract, handling of security assets for debt recovery and other
related matters.
1.11. Handling of risks and disputes among
members, principles for handling problems arising in the co-financing process.
1.12. Dossier archival.
1.13. Other details as agreed upon among the
co-financing parties.
1.14. Rights, obligations and responsibilities
of each member in the signing and performance of the co-financing and
credit-granting contracts with the financed parties.
2. The specific provisions of the co-financing
contracts must comply with the law provisions on economic contracts, the
provisions of this Regulation, and other relevant law provisions.
3. A co-financing contract must be made in
multiple copies of equal validity, sufficiently for each member to keep one.
Article 14.- Credit-granting
contracts
1. A credit-granting contract shall include
contents related to the specific provisions on each credit-granting form and
the provisions on the rights and obligations of each party in each
credit-granting relation, and the relevant necessary provisions as agreed upon
in the co-financing contract. The credit-granting contract must be certified by
the co-financing coordinating organization if such organization does not
participate in granting credit under this contract.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 15.- Loan
security, principal and interest recovery, debt rescheduling
Loan security, principal and interest recovery, and
debt rescheduling shall comply with the State Bank Governor’s current
regulations on lending, guaranty and agreement of the co-financing parties in
the co-financing contract and the credit-granting contract.
Article 16.- Responsibilities
of the co-financing parties
1. The co-financing parties shall have to adhere
to the current regulations on each credit-granting form as committed in the
co-financing and credit-granting contracts.
2. The financed parties shall have to report
fully on their financial situation and activities to the co-financing parties
(co-financing coordinating organization, credit-granting coordinating member
and concerned parties) for the latter to supervise and inspect when
co-financing.
3. The co-financing coordinating organizations shall
draft the co-financing contracts and reach agreement with the members thereon;
to discuss on behalf of the co-financing parties with the financed parties and
have the responsibility to urge other members to handle arising questions.
4. The syndicated loan-provision coordinating
members shall draft the syndicated loan-provision contracts, reach agreement
with the syndicated loan-provision members, sign on behalf of these members the
syndicated loan-provision contracts with the financed parties according to the
State Bank Governor’s regulations on lending and have the responsibility to
urge and supervise the other members and the financed parties in the syndicated
loan provision and concurrently inform promptly and fully the results of the
inspection of the use of capital, and other information to the co-financing
coordinating organizations and the concerned parties so as to discuss and agree
on handling measures to be taken when necessary.
5. The co-guaranty coordinating members shall abide
by the State Bank Governor’s regulations on guaranty.
6. The payment coordinating organizations shall
carry out the payment operations arising in the process of performing the
co-financing contracts in conformity with the payment agreements in the co-financing
and credit-granting contracts.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 17.- Inspection,
handling of risks and disputes
1. The co-financing parties must regularly
oversee the co-financing process, inspect the financed parties in the process
of managing and using capital according to the provisions of the contracts
signed by the concerned parties and current law provisions.
2. Where risks occur in the co-financing
process, the co-financing parties shall reach agreement among themselves and
with the financed parties on how to handle them according to the co-financing
contracts and current law provisions.
3. All disputes over breaches of the
co-financing or credit-granting contracts shall be solved by the concerned
parties through negotiation and agreement. Where they cannot be settled, the
concerned parties shall be entitled to initiate lawsuits according to the
provisions of law.
III. IMPLEMENTATION PROVISIONS
Article 18.- Implementation
organization
1. Based on to this Regulation, credit
institutions shall issue documents concretely guiding professional operations
suited to their respective conditions, characteristics and operation charters.
2. The heads of the units under the State Bank
of Vietnam and the directors of the State Bank’s branches in the provinces and
centrally-run cities shall base themselves on their assigned functions and
tasks to direct and oversee the implementation of this Regulation.
3. The director of the Accounting and Finance
Department shall have to guide the cost-accounting of transferred capital
amounts and granted credits as well as other particular professional operations
arising when credit institutions provide co-financing under this Regulation.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Any amendment and supplementation of this
Regulation shall be decided by the State Bank Governor.
FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Nguyen Van Giau