Headlines 14/12/2017 15:41 CH

Banks under special control entitled to zero-percent interest rate loans

Ngọc Duy

This is the highlight of the 2017 amended Law on Credit Institutions enacted by the 4th plenum of XIVth-Tenure National Assembly.

Pursuant to this Law, credit institutions subject to special control measures, including commercial banks, cooperative banks and finance companies, will have access to one or certain of the following advantages:

- They will be entitled to the State Bank’s special loans to which the interest rate of upto 0% is applied;

- They will be allowed to sell unsecured bad debts, bad debts for which collateral is subject to distraint, or of which legitimate evidencing documents or instruments are not available, to state-owned entities established by the Government for settlement of bad debts;    

- They will be entitled to exemption or relief of interest on refinancing or special loans of the State Bank;

- They will be entitled to receive deposits from, or apply for preferential loans granted by, other supporting credit institutions;

- They will be entitled to buy corporate debts or bonds currently held by supporting credit institutions which are grouped into different debt categories meeting legally prescribed requirements; 

- They will be entitled to purchase and invest in the information technology system in excess of the prescribed ratio, etc.

The 2017 amended Law on Credit Institutions is set to commence on January 15, 2018.

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