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THE STATE BANK
OF VIETNAM
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 3462/NHNN-TCKT
Re: Instructions on accounting for interest
subsidy sourced from the State Budget on loans of enterprises, cooperatives
and household businesses
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Hanoi, May 25,
2022
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To: Credit
institutions
Pursuant to Decree No. 31/2022/ND-CP dated May 20,
2022 of the Government on interest subsidies provided by state budget on loans
of enterprises, cooperatives, and household businesses (hereinafter referred to
as Decree No. 31);
Pursuant to Circular No. 03/2022/TT-NHNN dated May
20, 2022 of the State Bank of Vietnam on interest subsidies provided by state
budget on loans of enterprises, cooperatives, and household businesses
(hereinafter referred to as Circular No. 03);
Pursuant to the chart of accounts of credit
institutions issued together with Decision No. 479/2004/QD-NHNN dated April 29,
2004 of the Governor of the State Bank and Decisions, Circulars on amendments
to the chart of accounts of credit institutions;
To unify the process of handling and accounting for
interest subsidy; facilitate the making of reports, settlements and inspection
and audit of loans of enterprises, cooperatives and household businesses
receiving interest subsidy, the State Bank of Vietnam (SBV) guides credit
institutions that are commercial banks (Banks) that are regulated in Decree No.
31 on accounting for interest subsidy as follows:
I. GENERAL PRINCIPLES
1. The Bank shall calculate
interests on loans with interest subsidy as prescribed in Point b, Clause 3,
Article 7 of Decree No. 31, and record the interests on loans with interest
subsidy according to the guidance in this Official Dispatch.
2. The Bank shall collect
subsidized interests from borrowers, refund interest subsidies to borrowers,
receives interest subsidies from the State Budget, recover interest subsidies
and return them to the State Budget, and remit sums of interest subsidies in
excess of the granted limit to the State Budget in case they are not allowed to
continue receiving interest subsidies, finalize payment of interest subsidies,
etc., ensuring the compliance with procedures, time and documents related to
interest subsidy in an accurate, transparent, complete way as prescribed in
Decree No. 31, guidance in Circular No. 03 and relevant regulations of laws.
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4. For banks that have their
own monitoring software system to monitor specific entries of subsidized
interest expected to be collected, subsidized portion of interest, etc., the
Bank is allowed to calculate, monitor, collate and check the data of the
above-mentioned entries according to Sections II and III of this Official
Dispatch on separate appropriate management software (not having to open
detailed accounts) to record, summarize and report the main report data, forms
and documents related to the interest subsidy in an accurate, timely, complete
and reliable manner in accordance with the provisions of Decree No. 31,
guidance in Circular No. 03 and current regulations of law. In this case,
the Bank must have a management system and practice procedures and give thorough
instructions to staff in charge.
II. ACCOUNTS TO BE USED
1. Depending on specific
application of technology and management, the Bank shall open general account
of level 4, level 5 or appropriate detailed account of category 2 - Credit
activities and 02 detailed accounts under account 3941 “Receivable interests
from Vietnamese Dong loans” in order to separately supervise the interest
excluding the interest subsidy of the loan with interest subsidy (details: Interest
receivable from a loan with interest subsidy) and interest subsidy sum that has
been granted to the borrower but still has to be recovered at the request of
the Bank and/or the competent authority (details: Interest subsidy
granted but still to be recovered).
2. The Bank opens 03 detailed
accounts under account 3539 - “Amounts awaiting payment from the State Budget”
to separately account for and monitor interest subsidy deducted for/refunded to
the borrower (details: Realized receivables of interest subsidy); interest
subsidy awaiting to be deducted for/refunded to the borrower (details: Unrealized
receivables of interest subsidy); and refund the interest subsidy granted
to the borrower that has to be recovered to the State Budget or remit to the
State Budget the amount of money received in excess of the granted limit
(details: The sum of interest subsidy remitted to the State budget pending
settlement).
3. When receiving money for
interest subsidy from the State Budget, the Bank shall record it to account
4599 - “Other amounts pending payments” (details: Receiving money for
interest subsidy).
4. The Bank opens 03 detailed
accounts of account 941 - Uncollected loan interest in Vietnam Dong to monitor
and record the following transactions:
+ 01 detailed account of account 941 - Uncollected
loan interest in Vietnam Dong (details: Interest receivable from loan
with interest subsidy) to monitor and record the interest receivable from
the loan with interest subsidy.
+ 01 detailed account of account 941 - Uncollected
loan interest in Vietnam Dong (details: Unrealized receivable of
interest subsidy) to monitor and record unearned interest receivable from
loan with interest subsidy.
+ 01 detailed account of account 941 - Uncollected
loan interest in Vietnam Dong (details: Realized interest subsidy to
be recovered) to account for and manage the realized interest subsidy to be
recovered.
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1. Accounting for
receivable loan interest of borrower
a) At the time of calculation and accounting of
receivable loan interest, based on the result of receivable interest
calculation, the accountant shall make following accounting entries:
↑ To Debit against account 3941 – Receivable
interest from Vietnamese Dong loan:
(detailed: Receivable interest from loan with interest subsidy)
Interest amount receivable from borrower
(interest subsidy excluded)
↑ To Debit against account 3539 – Amounts pending
for payment by State budget:
(detailed: Unrealized receivable of interest subsidy)
Interest subsidy pending for deduction for
borrower
To Credit to account 702 - Collection of loan
interest:
Total interest amount receivable from borrower
b) When the borrower pays in full and on schedule
the principal balance and/or interest receivable to the Bank, it is not a loan
extension, but the borrower's loan is not classified into the standard debt
category as prescribed in applicable law, the accountant shall make following
accounting entries:
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Total interest amount receivable from borrower
Or To Debit against account 809 - Other expenses
for credit activities:
(different accounting period)
Total interest amount receivable from borrower
To Credit to account 3941 – Receivable interest
from Vietnamese Dong loan:
(detailed: Receivable interest from loan with interest subsidy)
Interest amount receivable from borrower
(interest subsidy excluded)
↓ To Credit to account 3539 – Amounts pending for
payment by State budget:
(detailed: Unrealized receivable of interest subsidy)
Interest subsidy pending for deduction for
borrower
At the same time, open the accounting books
(off-balance sheet) and record:
- To Debit to account 941 -
Uncollected loan interest in Vietnam Dong (details: Unrealized
interest receivable from borrower) to monitor the amount of loan interest
receivable from the borrower whose interest subsidy has not been realized
corresponding to the balance of account 3539 mentioned above;
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c) In case of the loan with overdue principal
balance and/or late payment interest balance:
On the date on which the loan has overdue principal
balance and/or late payment interest balance, the accountant shall prepare a
document to finalize the interest subsidy deducted for the borrower for the
late payment period:
+ In case the interest subsidy is waiting to be
deducted for the borrower is monitored on account 3539 - Amounts waiting for
payment from the State budget (details: Unrealized receivable of
interest subsidy), the accountant shall make following accounting entries:
↑ To Debit against account 3941 – Receivable
interest from Vietnamese Dong loan:
(detailed: Receivable interest from loan with interest subsidy)
Interest
subsidy pending for deduction for borrower
↓ To Credit to account 3539
– Amounts pending for payment by State budget:
(detailed: Unrealized receivable of interest subsidy)
+ In case the interest subsidy is waiting to be
deducted for the borrower is monitored on the accounting book (off-balance
sheet), the accountant shall make following accounting entries: To Credit to
account 941 - Uncollected loan interest in Vietnam Dong (details:
Unrealized receivable of interest subsidy); and to Debit against
account 941 - Uncollected loan interest in Vietnam dong (details: Receivable
interest from loan with interest subsidy).
d) When the borrower fully pays the overdue
principal balance and/or the late payment interest balance, the loan is still
eligible for interest subsidy for the next repayment terms, based on the
receipts for calculating interest receivable, the account shall do similarly to
Point (1.a) Section III of this Official Dispatch.
2. Accounting when
collecting loan interest
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a) Collect the interest according to the accrual
accounting method:
- In case the interest subsidy
is waiting to be deducted for the borrower is monitored on account 3539 -
Amounts waiting for payment from the State budget (details: Unrealized
receivable of interest subsidy), the accountant shall make following accounting
entries:
To Debit against appropriate account (cash,
deposit of borrower)
Interest amount
paid by borrower (of which interest subsidy amount has been deducted)
To Credit to account 3941 - Receivable interest
from Vietnamese Dong loan (Detailed: Receivable interest from
loan with interest subsidy)
At the same time, to deduct the interest subsidy
for borrower, the accountant shall make accounting entries as follows:
To Debit against account 3539 – Items pending for
payment by State budget (detailed: Realized receivable of interest
subsidy)
Realized
interest subsidy
To Credit to account 3539 – Amounts pending for
payment by State budget (detailed: Unrealized receivable of
interest subsidy)
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To Debit against appropriate account (cash,
deposit of borrower):
Interest amount paid by borrower (of which
interest subsidy amount has been deducted)
To Debit against account 3539 – Amounts pending
for payment:
(detailed: Realized receivable of interest subsidy)
Amount of interest subsidy granted to the
borrower
To Credit to account 702 - Collection of loan
interest:
Total collected interest
To Credit to account 941 - Uncollected loan
interest in Vietnam Dong (details: Unrealized receivable of
interest subsidy) for the interest subsidy granted to the borrower and to
Credit to the account 941 - Uncollected loan interest in Vietnam Dong (details:
Receivable interest from loan with interest subsidy).
b) In case of interest collection according to the
cash accounting method: The accountant shall make the following entries:
To Debit against appropriate account (cash,
deposit of borrower):
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To Debit against account 3539 – Amounts pending
for payment:
(detailed: Realized receivable of interest subsidy)
Amount of interest subsidy granted to the
borrower
To Credit to account 702 - Collection of loan
interest:
Total collected interest
2.2. In case the full loan interest of the
borrower in the period is collected and the amount of interest subsidy is
refunded to the borrower on the same day of interest collection
a) Collect the interest according to the accrual
accounting method:
- In case the interest subsidy
is waiting to be deducted for the borrower is monitored on account 3539 -
Amounts waiting for payment from the State budget (details: Unrealized
receivable of interest subsidy), the accountant shall make accounting entries
as follows:
To Debit against appropriate account (cash,
deposit of borrower):
Total interest amount receivable from borrower
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Interest amount receivable from borrower
(interest subsidy excluded)
To Credit to account 3539 – Amounts pending for
payment by State budget:
(detailed: Unrealized receivable of interest subsidy)
Interest subsidy pending for deduction for
customer
At the same time, to refund the interest subsidy to
borrower on the same day of interest collection, the accountant shall make
accounting entries as follows:
To Debit against account 3539 – Items pending for
payment by State budget (detailed: Realized receivable of interest
subsidy)
Realized
interest subsidy
To Credit to appropriate account (cash, deposit
of borrower)
- In case the interest
subsidy waiting to be deducted for the borrower is monitored on accounting book
(off-balance sheet), the accountant shall make accounting entries as follows:
To Debit against appropriate account (cash,
deposit of customer)
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To Credit to account 702 - Collection of loan
interest
When refunding the interest subsidy to the
borrower on the same day of interest collection, the accountant shall make
accounting entries as follows:
To Debit against account 3539 – Items pending for
payment by State budget (detailed: Realized receivable of interest
subsidy)
Realized interest subsidy
To Credit to appropriate account (cash, deposit
of borrower)
To Credit to account 941 - Uncollected loan
interest in Vietnam Dong (details: Unrealized receivable of
interest subsidy) for the interest subsidy deducted for the borrower and to
Credit to the account 941 - Uncollected loan interest in Vietnam Dong (details:
Receivable interest from loan with interest subsidy).
b) In case of interest collection according to the
cash accounting method: The accountant shall make the following entries:
To Debit against appropriate account (cash,
deposit of customer)
Total collected
interest
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At the same time, to refund the interest subsidy to
borrower on the same day of interest collection, the accountant shall make
accounting entries as follows:
To Debit against account 3539 – Items pending for
payment by State budget (detailed: Realized receivable of interest
subsidy)
Realized
interest subsidy
To Credit to appropriate account (cash, deposit
of borrower)
3. Accounting for interest
subsidy received from the State Budget
When the Bank receives the sum of interest subsidy
from the State Budget, the accountant shall make the accounting entries as
follows:
To Debit against appropriate account (deposit,
etc.)
To Credit to account 4599 – Amounts pending for
payment (detailed: Receiving money for interest subsidy)
4. Accounting for recovering
the sum of interest subsidy improperly granted:
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a) The Bank converts the entire amount of interest
subsidies to borrowers into an interest receivable from borrowers:
- In case the interest subsidy
granted to the borrower is monitored on account 3539 - Amounts waiting for
payment from the State budget (details: Realized receivable of
interest subsidy), the accountant shall make accounting entries as follows:
To Debit against account 3941 - Receivable
interest from Vietnamese Dong loan (detailed: Interest subsidy
granted but still to be recovered)
Realized
interest subsidy to be recovered
To Credit to account 3539 – Amounts pending for
payment by State budget (detailed: Realized receivable of interest
subsidy)
- In case the interest subsidy
has not been deducted for the borrower, the Bank recorded and monitored it on
account 3539 - Amounts waiting for payment (details: Unrealized
receivable of interest subsidy) and account 941 - Uncollected loan interest
in Vietnam Dong (details: Unrealized receivable of interest subsidy) on
the accounting book (off-balance sheet):
+ Regarding the receivable interest subsidy that
has not been deducted/paid for the borrower and is monitored it on account 3539
- Amounts waiting for payment (details: Unrealized receivable
of interest subsidy), the accountant shall make accounting entries as
follows:
To Debit against account 3941 - Receivable
interest from Vietnamese Dong loan (Detailed: Receivable
interest from loan with interest subsidy)
Unrealized
receivable of interest subsidy
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+ Regarding the receivable interest subsidy that
has not been deducted/paid for the borrower and is monitored on the accounting
book (off-balance sheet), the accountant shall finalize it to monitor it as
interest receivable from loan with interest subsidy for continued collection,
the accountant shall make the accounting entries as follows: To Credit to
account 941 - Uncollected loan interest in Vietnam Dong (details: Unrealized
receivable of interest subsidy) and Debit against account 941 - Uncollected
loan interest in Vietnam Dong (details: Interest receivable from loan
with interest subsidy) with the corresponding amount.
- When the borrower's deposit
account has enough balance to immediately withdraw the interest subsidy that
has been granted against the regulations, or the borrower has paid enough cash
corresponding to the interest subsidy that has been granted against regulations
before or the Bank recovers part of the improperly granted interest subsidy
from the borrower, the accountant shall make accounting entries as follows:
To Debit against appropriate account (cash, deposit
of borrower, etc.):
To Credit to account 3941 - Receivable interest
from Vietnamese Dong loan (detailed: Interest subsidy granted but
still to be recovered)
+ If the Bank immediately remits the recovered
interest subsidy that has been improperly granted to the State Budget, the Bank
shall account it according to the guidance at Point (5), Section III of this
Official Dispatch.
+ If the Bank does not immediately remit the
recovered interest subsidy that has been improperly granted to the State
Budget, the Bank is responsible for making a report to deduct it from the
amount the State Budget pays for interest subsidy in accordance with Decree No.
31.
- For the interest subsidy
that has been granted but has not been recovered:
+ In the process of monitoring and management, if
the Bank considers that the granted interest subsidy is uncollectible in
accordance with the applicable law, the accountant shall make the accounting
entries as follows:
To Debit against account 809 - Other expenses for
credit activities (different accounting period)
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To Credit to account 3941 - Receivable interest
from Vietnamese Dong loan (detailed: Interest subsidy
granted but still to be recovered)
And open accounting book (off-balance sheet) to
Debit against account 941 - Uncollected loan interest in Vietnam Dong (details:
Realized interest subsidy to be recovered) to account for the
realized interest subsidy to be recovered.
+ When the Bank recovers the loan interest that has
been granted that is monitored on account 941 - Uncollected loan interest in
Vietnam dong (details: Realized receivable of interest subsidy), the
accountant shall make accounting entries as follows:
To Debit against appropriate account (cash, deposit
of borrower, etc.):
To Credit to account 702 - Collection of loan
interest
To Credit to account 941 - Uncollected loan
interest in Vietnam Dong (details: Interest subsidy granted but still
to be recovered).
After the interest subsidy is recovered, the Bank
shall refund it to the State Bank and make accounting entries as prescribed in
Point (5) Section III of this Official Dispatch or make a report to deduct it
from the amount the State Budget pays for interest subsidy as prescribed in
Decree No. 31.
5. Accounting for refund to
the State Budget the amount of interest subsidy that has been improperly
granted or remittance to the State Budget the amount received in excess of the granted
limit
In case the Bank immediately refunds to the State
Budget the amount of interest subsidy that has been improperly granted or
remits to the State Budget the amount received in excess of the granted limit,
the accountant shall make following accounting entries:
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To Credit to appropriate account (deposit, etc.)
6. Accounting when
finalizing interest subsidy:
Based on the results of annual appraisal of
interest subsidy of the Ministry of Finance, it is required to notify the
amount that the State Budget still has to pay to the Bank or recover; after
checking, if it matches exactly with the recorded and monitored data of
management of financial information at the Bank, the accountant shall document
and record the balance of account 4599 - Other pending payments (details: Receive
money for interest subsidy) and account 3539- - Amounts pending for payment
by State budget (detailed: The sum of interest subsidy remitted to the State
budget pending settlement).
- In case the State Budget
still has to pay the remaining part of the interest subsidy to the Bank:
The accountant shall make the following entries:
To Debit against appropriate account (deposit,
etc.)
The sum of interest subsidy to be received
after settlement of interest subsidy
To Debit against account 4599 - Other amounts
pending for payment:
(detailed: Receiving money for interest subsidy)
Total interest subsidy amount received from
the State Budget
To Credit to account 3539 – Amounts pending for
payment by State budget (detailed: The sum of interest subsidy
remitted to the State budget pending settlement).
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To Credit to account 3539 – Amounts pending for
payment by State budget:
(detailed: Realized receivable of interest subsidy)
Total realized interest subsidy – (minus)
realized interest subsidy to be recovered
- In case the State Budget
recovers the part of the interest subsidy that has been overpaid to the Bank:
The accountant shall make the following entries:
To Debit against account 4599 - Other amounts
pending for payment:
(detailed: Receiving money for interest subsidy)
Total interest subsidy amount received from
the State Budget
To Credit to account 3539 – Amounts pending for
payment by State budget (detailed: The sum of interest subsidy
remitted to the State budget pending settlement).
Sum of money remitted to the State Budget
To Credit to account 3539 – Amounts pending for
payment by State budget:
(detailed: Realized receivable of interest subsidy)
Total realized interest subsidy – (minus)
realized interest subsidy to be recovered
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Sum of interest subsidy to be remitted to the
State Budget after settlement of interest subsidy
7. Handling of interest
subsidies receivable after finalizing interest subsidy for the whole program
(both in the period of 2022 and 2023)
- Regarding the interest
subsidy that has been granted but has not been recovered from the borrower and
is monitored on account 3941 - Uncollected loan interest in Vietnam dong (details:
Realized interest subsidy to be recovered) and account 941 -
Uncollected loan interest in Vietnam Dong (details: Realized interest
subsidy to be recovered), the Bank continues to monitor and recover this
sum of interest subsidy.
- In case the Bank and/or an
inspection authority (SBV, Government Inspectorate, etc.) discover more amounts
to be recovered from the interest subsidy granted after the settlement of
interest subsidy for the whole program has been approved, the Bank shall
immediately recover such amounts to return it to the State.
The above is the guidance of the State Bank of
Vietnam on accounting for interest subsidy from the State Budget on loans of
enterprises, cooperatives, and household businesses to Banks for study and
implementation.
Difficulties that arise during the implementation
of this document should be reported to the State Bank (via Department of
Finance and Accounting) for guidance and further actions./.
BY ORDER OF THE
GOVERNOR
DIRECTOR OF DEPARTMENT OF FINANCE AND ACCOUNTING
Nguyen Hong Van
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