Headlines 03/01/2023 17:45 CH

New regulation of Vietnam on cases where credit institutions do not have to satisfy the requirement for a non-performing loan ratio below 3% when purchasing debts

Duy Văn

On December 26, 2022, the Governor of the State Bank of Vietnam promulgated Circular No. 18/2022/TT-NHNN on amendments to Circular No. 09/2015/TT-NHNN on debt purchase and sale by credit institutions and foreign bank branches.

According to the Circular, additional cases where credit institutions do not have to satisfy the requirement for a non-performing loan ratio below 3% are as follows:

- Credit institutions under special control purchasing qualified debts as prescribed by Clause 2 Article 146a of the Law on Credit Institutions;

- Credit institutions under special control purchasing qualified debts of supporting credit institutions following the scheme for the recovery of credit institutions under special control approved following Clause 1 Article 148b of the Law on Credit Institutions;

- Commercial banks subject to mandatory transfer plans (transferor) purchasing qualified debts of credit institutions that receive shares/stakes under mandatory transfer plans (transferees) following the compulsory transfer scheme approved by competent authorities;

- Cases of debt purchase prescribed in Points a(ii) and a(iii) Clause 6 Article 5 of Circular No. 09/2015/TT-NHNN (amended by Circular No. 18/2022/TT-NHNN) specifically:

+ Credit institutions re-purchasing debts sold to credit institutions under special control following the scheme for the recovery of credit institutions under special control approved according to Clause 6 Article 148đ of the Law on Credit Institutions;

+ Transferees re-purchasing debts sold to transferors according to Point c Clause 12 Article 5 of Circular No. 09/2015/TT-NHNN (amended by Circular No. 18/2022/TT-NHNN).

Circular No. 18/2022/TT-NHNN comes into force as of February 9, 2023.

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Above are the summary and notification of new documents for customers of THU VIEN PHAP LUAT. For more information, please send an email to [email protected].

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