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THE STATE BANK
OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No.
37/2024/TT-NHNN
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Hanoi, June 30,
2024
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CIRCULAR
PRESCRIBING
GRANT OF SPECIAL LOANS
Pursuant to the Law on Credits Institutions dated
January 18, 2024;
Pursuant to the Government's Decree No.
102/2022/ND-CP dated December 12, 2022 prescribing functions, tasks, powers and
organizational structure of the State Bank of Vietnam (SBV);
At the request of the Director of the Monetary
Policy Department;
The Governor of the State Bank of Vietnam
promulgates a Circular prescribing grant of special loans.
Chapter I
GENERAL PROVISIONS
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1. This Circular provides regulations on the grant
of special loans by the State Bank of Vietnam (hereinafter referred to as
“SBV”), and other credit institutions to credit institutions.
2. The following contents are not governed by this
Circular:
a) Grant of special loans by Deposit Insurance of Vietnam
to credit institutions and grant of special loans by SBV to Deposit Insurance
of Vietnam;
b) SBV’s grant of special loans at 0%/year rate and
special loans without collateral as prescribed in clause 4 Article 193 of the
Law on Credit Institutions No. 32/2024/QH15 (hereinafter referred to as “the
Law on Credit Institutions”).
Article 2. Regulated
entities
1. Credit institutions.
2. Other organizations and individuals involved in
the grant of special loans by SBV and other credit institutions to credit
institutions.
Article 3. Definitions
For the purposes of this Circular, the terms used
herein are construed as follows:
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2. Transferee under mandatory transfer plan
means the party that receives transfer of the credit institution placed under
special control under a mandatory transfer plan as prescribed in Section 4
Chapter X of the Law on Credit Institutions or a transferee prescribed in
clause 39 Article 4 of the Law on Credit Institutions 2010.
3. Borrower means a credit institution that
gets a special loan from SBV or another credit institution.
4. Extension of special loan term means the
extension granted by a lender of the term of a special loan for a period
exceeding its original term agreed upon or specified in the Decision to grant
special loan.
5. Deposit payment guidelines means a
document which is issued or approved by SBV during settlement of a credit
institution placed under special control, and provides guidelines on the use of
special loan amount by the credit institution placed under special control to
make payment of deposits to depositors.
6. Interest receivable means an amount of
outstanding interests accrued under a line of credit agreement or contract
between a credit institution and its borrower (excluding borrowers that are
credit institutions) to which the credit institution is entitled to claim.
7. SBV’s provincial branch means a SBV’s
branch located in the province or central-affiliated city where the borrower is
headquartered.
8. Mandatory transfer plan under the
Law on Credit Institutions 2010 means a plan prescribed in clause 38
Article 4 of the Law on Credit Institutions No. 47/2010/QH12 as amended in the
Law No. 17/2017/QH14 (hereinafter referred to as “Law on Credit Institutions
2010”).
9. Mandatory transfer plan under the
Law on Credit Institutions 2024 means one of the restructuring plans
prescribed in clause 29 Article 4 and Section 4 Chapter X of the Law on Credit
Institutions.
10. Recovery plan means one of the
restructuring plans prescribed in clause 29 Article 4 and Section 2 Chapter X
of the Law on Credit Institutions.
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12. Debt claim means a credit institution’s
right to claim the outstanding principal accrued under a line of credit
agreement or contract between the credit institution and its borrower
(excluding borrowers that are credit institutions).
13. Decision to grant special loan means a
decision on grant of a special loan to a credit institution made by the SBV’s
Governor.
14. Special loan term means a period of time
starting on the day following the day on which the lender begins to disburse
the special loan amount and ending on the day on which the borrower has to
repay principal and interest amounts in full under the Decision to grant
special loan (in case the special loan is granted by SBV) or as agreed upon
between the lender and the borrower (in case the special loan is granted by
another credit institution).
15. Assisting credit institution means a
credit institution prescribed in clause 39 Article 4 of the Law on Credit
Institutions.
16. Guidelines on grant of special loans means
a document issued by SBV to provide guidelines for credit institutions placed
under special control, transferees under mandatory transfer plans and relevant
SBV’s affiliated units on grant of special loans under approved mandatory
transfer plans under the Law on Credit Institutions 2010.
Article 4. Special lending
cases
1. SBV shall use funding derived from its
performance of the central bank’s functions to carry out money issuance for
granting special loans to:
a) credit institutions facing bank run, including
commercial banks, cooperative banks, people’s credit funds and microfinance
institutions, for the purpose of paying deposits to depositors;
b) credit institutions placed under special
control, including commercial banks, cooperative banks, finance companies and
microfinance institutions, for the purpose of implementing approved recovery
plans;
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d) commercial banks placed under special control
for the purpose of assisting their recovery under approved mandatory transfer
plans under the Law on Credit Institutions 2010.
2. Cooperative Bank of Vietnam shall consider
granting special loans to:
a) people’s credit funds facing bank run for the
purpose of paying deposits to depositors; and
b) people’s credit funds placed under special
control, for the purpose of implementing approved recovery plans.
3. Other credit institution (except Cooperative
Bank of Vietnam) shall consider granting special loans to:
a) credit institutions facing bank run, including
commercial banks, cooperative banks, people’s credit funds and microfinance
institutions, for the purpose of paying deposits to depositors;
b) credit institutions placed under special
control, including commercial banks, cooperative banks, finance companies and
microfinance institutions, for the purpose of implementing approved recovery
plans; and
c) commercial banks placed under special control
for the purpose of implementing approved mandatory transfer plans under the Law
on Credit Institutions 2024.
Article 5. Lending rules and
settlement of special loans
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a) Contents on settlement of existing special loans
in the recovery plan, the plan for merger, amalgamation, or transfer of entire
shares/stakes or mandatory transfer plan under the Law on Credit Institutions
2024 (hereinafter referred to as “restructuring plan”) of the borrower must be
conformable with provisions on loan term, interest rate, collateral,
requirements attached to collateral, and repayment of special loan debts in
Articles 22, 23, 24 and 25 hereof, except provisions of point b of this clause;
b) Any modifications to an existing special loan
with 0%/year rate or without collateral shall comply with provisions of clause
4 Article 193 of the Law on Credit Institutions.
2. With regard to the special loans specified in
Points b, c Clause 1 Article 4 hereof:
a) The special loan shall be granted according to
provisions of Chapter III hereof and the borrower’s approved recovery plan or
mandatory transfer plan under the Law on Credit Institutions 2024;
b) Any modifications to a special loan with 0%/year
rate or without collateral shall comply with provisions of clause 4 Article
172, clause 7 Article 183 of the Law on Credit Institutions.
3. With regard to the special loans specified in Point
d Clause 1 Article 4 hereof:
a) A special loan shall be granted according to the
approved mandatory transfer plan under the Law on Credit Institutions 2010 and
guidelines on grant of special loans (if any); contents on SBV’s procedures for
grant of special loans, signing of special loan agreement, acceptance of
pledged or mortgaged collateral, and disbursement of special loans which are
not included in the approved mandatory transfer plan under the Law on Credit
Institutions 2010 or guidelines on grant of special loans shall comply with
provisions of Articles 26 and 27 of this Circular;
b) Any modifications to a special loan shall only
be made if such modifications are conformable with provisions of Chapter III
hereof, except provisions of point c of this clause;
c) Any modifications to a special loan with 0%/year
rate or without collateral shall comply with provisions of clause 7 Article 183
of the Law on Credit Institutions.
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5. With regard to the special loans granted by SBV,
the currency unit used in extending loans and repaying debts shall be VND.
6. Repayment of special loan debts shall be given
priority as prescribed in clause 1 Article 194 of the Law on Credit
Institutions.
7. If a borrower gets special loans from more than
one lender and is financially incapable of repaying debts to all lenders, debt
repayments shall be made to all lenders in proportion to the outstanding debts
(including principal and interest amounts) at the repayment date.
8. Receipt and disposition of collateral for
special loans shall comply with provisions of this Circular and regulations of
law on security measures for fulfillment of obligations.
Article 6. Conversion of
refinancing loans granted by SBV or loans granted by Cooperative Bank of
Vietnam to people’s credit funds into special loans
1. From the day on which a credit institution is
placed under special control, the refinancing loan granted by SBV to that
credit institution shall be converted into a special loan according to the
following provisions:
a) If the refinancing loan does not yet become due,
the outstanding principal and interest of the refinancing loan shall be
converted into those of the special loan;
b) If the refinancing loan is overdue, the overdue
principal and deferred outstanding interests of the refinancing loan (including
outstanding interests on the refinancing loan that the credit institution has
to pay but fails to pay on schedule) shall be converted into those of the
special loan;
c) Apart from the factors prescribed in points a
and b of this clause, other factors of the special loan shall still comply with
the mechanism for granting the relevant refinancing loan.
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3. The conversion of a refinancing loan granted by
SBV into a special loan shall be specified in a document made by SBV to place
the credit institution under special control.
Article 7. Authority to sign
documents included in application for special loan, application for extension
of special loan term, application for modifications to Decision to grant
special loan, and special loan agreements
The legal representative or authorized
representative (hereinafter referred to as “lawful representative”) of a borrower
shall be vested with authority to sign the documents included in its
application for special loan, application for extension of special loan term,
application for modifications to Decision to grant special loan, and the
special loan agreement. In case documents are signed by an authorized
representative, the application for special loan, application for extension of
special loan term, application for modifications to Decision to grant special
loan, and the special loan agreement must also include a power of attorney
which is made in accordance with regulations of law.
Article 8. Procedures for SBV’s
modification of Decision to grant special loan
1. After a decision to make modifications to a
special loan (including modifications made to settle a special loan granted
under an approved restructuring plan or mandatory transfer plan under the Law
on Credit Institutions 2010) is issued by a competent authority, if the
Decision to grant special loan needs to be modified, the borrower shall submit
04 packages of the application for SBV’s modifications to Decision to grant
special loan to the Special Control Board.
Such an application includes:
a) An application form for modifications to
Decision to grant special loan which must clearly indicate required modifications,
grounds and reasons for such modifications and commitments to comply with
regulations of law on grant of special loans;
b) Any documents supporting the application for
modifications to Decision to grant special loan.
2. Within a maximum duration of 02 working days
from its receipt of an application consisting of adequate documents as
prescribed in clause 1 of this Article, if the Special Control Board wishes to
propose modifications to the Decision to grant special loan, it shall send 02
packages of the application to SBV (the Financial Policy Department). If
modifications to the borrower’s recovery plan are approved or decided by a
SBV’s provincial branch, the Special Control Board shall also send 01 package
of the application to that SBV’s provincial branch.
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3. Within a maximum duration of 03 working days
from its receipt of an adequate application of the borrower and the proposal of
the Special Control Board as prescribed in clauses 1 and 2 of this Article, the
SBV’s provincial branch shall provide the Financial Policy Department with a
written response indicating that whether or not it approves the borrower’s
application as prescribed in clause 1 of this Article. If the application is
rejected, reasons for such rejection must be provided.
4. Within a maximum duration of 02 working days
from its receipt of an adequate application and written opinions as prescribed
in Clauses 1, 2 and 3 of this Article, the Financial Policy Department shall
send the application and such written opinions to the SBV Banking Supervision
Agency for its opinions. If the application for modifications to Decision
to grant special loan includes contents concerning the collateral that is
valuable papers, the Financial Policy Department shall also send the borrower’s
application to SBV’s Operations Center for its opinions.
5. Within a maximum duration of 05 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, the SBV Banking
Supervision Agency shall give its written response to the Financial Policy
Department. Such response shall:
a) indicate whether or not it approves the
borrower’s application, and, if the application is rejected, give reasons for
such rejection, except provisions of point b of this clause;
b) include its opinions about the proposal of the
SBV’s provincial branch as prescribed in clause 3 of this Article (in case
modifications to the borrower’s recovery plan are approved or decided by the
SBV’s provincial branch).
6. Within a maximum duration of 05 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, SBV’s Operations Center
shall give its written opinions to the Financial Policy Department about
modifications to Decision to grant special loan concerning the collateral which
is valuable papers.
7. If written opinions given by requested agencies
are not adequate as prescribed in this Article, within a maximum duration of 02
working days from its receipt of such written opinions, the Financial Policy
Department shall give written request to such agencies for their additional
opinions. Within a maximum duration of 05 working days from their receipt
of the written request from the Financial Policy Department, requested agencies
must provide their additional opinions as requested.
8. Within a maximum duration of 05 working days
from its receipt of adequate opinions from relevant agencies as prescribed in
Clauses 3, 5, 6 and 7 of this Article, the Financial Policy Department shall
prepare and submit a consolidated report thereof to the SBV’s Governor for
considering and making decision on modifications to Decision to grant special
loan.
9. Within a maximum duration of 30 working days
from its receipt of an adequate application of the borrower and written
opinions of the Special Control Board as prescribed in clauses 1 and 2 of this
Article, SBV shall make a Decision on modifications to Decision to grant
special loan. If the borrower's application is rejected, reasons for such
rejection must be provided.
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SBV’S GRANT OF SPECIAL
LOANS TO CREDIT INSTITUTIONS FACING BANK RUN
Article 9. Purposes of special
loans
1. If the borrower is a credit institution that is
not placed under special control, it shall only use the special loan amount for
paying individual customers who have made deposits to it.
2. If the borrower is a credit institution placed
under special control, it shall only use the special loan amount for paying
individual customers who have made deposits to it; use of the special loan
amount for paying depositors that are organizations shall be subject to the
decision of the SBV's Governor issued to each specific borrower at the request
of the Special Control Board.
3. Receivers of the payments specified in Clauses 1
and 2 of this Article shall exclude:
a) Related persons of the borrower as prescribed in
clause 24 Article 4 of the Law on Credit Institutions and SBV’s guidelines on
related persons of credit institutions;
b) Executives and managers of the borrower as
prescribed in clauses 25, 26 Article 4 of the Law on Credit Institutions,
except those appointed or designated by competent authorities;
c) Related persons of an individual or organization
that is a manager, executive, capital-contributing member or shareholder
holding at least 5% of charter capital or voting shares of the borrower as
prescribed in Clause 24 Article 4 of the Law on Credit Institutions and SBV’s
guidelines on related persons of individuals and organizations (if any).
4. The entities mentioned in points a, b and c clause
3 of this Article are determined from the day on which:
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b) SBV makes a document to place the borrower under
special control (in case the borrower is placed under special control before
the date specified in point a of this clause).
5. In case the borrower is a credit institution
placed under special control and deposit payment guidelines are available,
payment of deposits, eligible receivers and ineligible receivers shall be
determined according to provisions of clauses 1, 2 and 3 of this Article and
the deposit payment guidelines.
Article 10. Special loan
amounts
SBV shall consider deciding the amount of special
loan to be granted to a credit institution that applies for special loan on the
basis of its solvency.
Article 11. Special loan
terms, extension of special loan term
1. The term of a special loan shall be considered
and decided by SBV, but less than 12 months.
2. SBV shall consider granting extension of special
loan term on the basis of the borrower’s solvency or the plan for settlement of
the existing special loan included in the restructuring plan submitted to SBV
(if any). Each extension shall be less than 12 months.
Article 12. Interest rates
1. The rate of interest on a special loan and the
rate of interest on an extended special loan shall be equal to the refinancing
rate imposed by SBV on loans secured by pledged valuable papers (hereinafter
referred to as “SBV’s pledged-asset lending rate”) at the day on which the
special loan is disbursed or the starting date of the granted extension of
special loan term.
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3. No interest will be charged on late payment of
outstanding interests.
Article 13. Collateral for
special loans
1. The borrower must provide assets as collateral
for a special loan in the following order of priority:
a) Pledge of SBV bills, government bonds (including
treasury bills, treasury bonds, bonds for central-level works, national
development bonds, government bonds issued by Vietnam Development Bank
(formerly, Development Assistance Fund) according to the Prime Minister’s
directive), government-guaranteed bonds of which principal and interest shall
be fully paid when they are due, and municipal bonds which are included in the
list of valuable papers to be used in SBV’s transactions;
b) Pledge of bonds issued by commercial banks over
50% of charter capital of which is held by the State (except commercial banks
which have been compulsorily acquired);
c) Pledge of bonds issued by credit institutions
which are not placed under special control (except commercial banks specified
in Point b of this Clause) and bonds issued by other enterprises.
2. Where all types of assets specified in Clause 1
of this Article have been provided as collateral, the borrower may use the
following types of assets as collateral when applying for a special loan or
extension of special loan term, and is not required to implement the provisions
of Clauses 3, 4, 5 of this Article with regard to outstanding amounts of
special loans:
a) Mortgage of debt claim;
b) Mortgage of interests receivable.
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a) The value of the types of collateral specified
in Clause 1 of this Article shall be determined according to the provisions of
Appendix IV enclosed herewith;
b) Conversion value of each type of collateral
shall be determined adopting the following formula:
TS =
GT
TL
Where:
TS: Conversion value of a type of collateral;
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TL: Collateral conversion ratio corresponding to
the type of collateral.
c) The collateral conversion ratio (TL) is
determined as follows:
(i) With regard to the valuable papers specified in
Point a Clause 1 of this Article, TL is the minimum ratio of the value of the
valuable paper to the loan amount secured with pledge of such valuable paper
granted by SBV to the credit institution according to SBV’s regulations in each
period;
(ii) With regard to the types of collateral
specified in Points b, c Clause 1 and Clause 2 of this Article, TL shall be
120%;
d) At the time of application for a special loan or
extension of special loan term, the credit institution must ensure that total
conversion value of types of eligible collateral shall not be smaller than the
amount of the special loan that it applies for or whose term is to be extended.
4. If any type of collateral specified in Point c
Clause 1 of this Article does not meet the requirements laid down in Clause 2
Article 14 of this Circular resulting in the circumstance that total conversion
value of eligible collateral is smaller than the outstanding principal of the
special loan, the borrower shall be required to replace the existing assets
used as collateral and/or provide additional assets as collateral to ensure
that total conversion value of eligible collateral shall not be smaller than
the outstanding principal of the special loan.
5. Addition or replacement of assets used as
collateral prescribed in clause 4 of this Article shall be carried out according
to the following provisions:
a) Within 10 working days from the day on which the
event that total conversion value of eligible collateral is smaller than the
outstanding principal of the special loan occurs, the borrower shall prepare
and submit a written request for addition/replacement of collateral (as
approved by the Special Control Board, if the borrower is a credit institution
placed under special control) to the relevant SBV's provincial branch. This
request must also be accompanied with the list of assets additionally provided
as collateral and the list of existing assets used as collateral to be replaced
using the form in Appendix IIIA enclosed herewith;
b) Within a maximum duration of 05 working days from
its receipt of the written request and the lists of assets used as collateral
from the borrower as prescribed in point a of this clause, the SBV's provincial
branch shall directly perform or cooperate with relevant units in performing
procedures for addition/replacement of assets used as collateral in order that
total conversion value of eligible collateral shall not be smaller than the
outstanding principal of the special loan. In case of replacement of assets
used as collateral, ineligible assets shall be withdrawn only after eligible
assets have been additionally provided.
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1. The valuable papers specified in Points a, b
Clause 1 Article 13 of this Circular must meet the following requirements:
a) They are issued in VND;
b) They are deposited at SBV, either deposited
directly at SBV or deposited on SBV’s client accounts opened at Vietnam
Securities Depository and Clearing Corporation (VSDC);
c) They are not valuable papers issued by the borrower
(for the valuable papers specified in point b clause 1 Article 13 hereof);
d) The term to maturity of the valuable paper must
not be shorter than the term of the special loan.
2. In addition to the requirements laid down in
clause 1 of this Article, the bonds specified in Point c Clause 1 Article 13 of
this Circular must also meet the following requirements:
a) They are listed in accordance with regulations
of law;
b) The collateral is available and its value, as
determined according to internal regulations of the credit institution at the
nearest time to the time of application for special loan or application for
extension of special loan term or at the time of valuation of collateral
according to internal regulations of the credit institution during the special
loan term, is not smaller than the face value of bonds.
3. Loans granted under line of credit agreements or
contracts from which the debt claim or interests receivable arise as prescribed
in clause 2 Article 13 of this Circular must be loans secured with assets.
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1. When a special loan becomes due, the borrower
shall fully repay both principal and interest on the special loan to SBV.
2. When a special loan becomes due, both principal
and interest shall be paid in one lump sum, including the case where a special
loan term is extended.
3. The borrower may also repay the special loan
debts (principal and interest) before maturity date without incurring early
repayment charges.
4. The borrower is required to repay the special
loan debt in the following cases:
a) In case the borrower earns money from debt
claims/interests receivable provided as collateral for the special loan
(hereinafter referred to as “collected debts”), within the first 05 working
days of the month, the borrower shall repay the principal amount of the special
loan in the chronological order of the signed indebtedness contracts; repayment
amounts equal total collected debts in the previous month;
b) In case the borrower fails to make addition/replacement
of assets used as collateral as prescribed in Clauses 4, 5 Article 13 of this
Circular, within 05 working days after the deadline for addition/replacement of
assets used as collateral prescribed in Clauses 4, 5 Article 13 of this Circular,
the borrower shall make repayment of the principal amount of the special loan
which must be at least the difference between the outstanding principal of the
special loan and total conversion value of eligible collateral of all types.
5. If a special loan amount is found to be used for
the purposes other than the approved loan purpose, within 07 working days from
the day on which SBV gives a written notice of violation as prescribed in Point
dd Clause 2, Point k Clause 4 Article 34 of this Circular (hereinafter referred
to as the "date of SBV‘s violation notice”), the borrower shall be
required to make payment of:
a) The special loan amount which has been
improperly used;
b) The interest on the improperly used special loan
amount which is calculated at the rate equaling 130% of the SBV’s pledged-asset
lending rate announced on the date of SBV’s violation notice for the period
starting on the day on which the borrower receives disbursement of the
improperly used special loan amount and ending on the day on which such amount
is repaid by the borrower.
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a) In case the borrower fails to repay debts as
prescribed in Clause 1 of this Article and is not granted extension of special
loan term, SBV shall monitor the outstanding debt of the special loan as an
overdue debt, and charge interest at the interest rate specified in Clause 2
Article 12 of this Circular on the principal amount of the special loan which
is due but not repaid (hereinafter referred to as “unpaid principal”) in
accordance with SBV’s regulations on methods for calculation and accounting of
revenues and payment of interests in depositing and lending operations between
SBV and credit institutions;
b) Take out money from the borrower’s account
opened at SBV for collecting the debt payable by the borrower (including unpaid
principal and interest payable) within 10 working days from the day on which
the borrower is notified in writing of such an action. If the debt payable by
the borrower is not yet collected in full, SBV shall continue monitoring and
taking out money from the borrower’s account until the debt is collected in
full;
c) Request the borrower to transfer the ownership
of collateral which is the valuable papers specified in Point a Clause 1
Article 13 of this Circular to SBV;
d) Take measures, as prescribed by law, for
disposition of the collateral prescribed in Clause 1 Article 13 of this
Circular;
dd) Collect the special loan debts (including
principal and interest) from the borrower’s proceeds from disposition of the
collateral specified in Points b, c Clause 1 and Clause 2 Article 13 of this
Circular;
e) Collect the special loan debts (including
principal and interest) from the borrower’s other funding sources (if any).
7. In case the borrower fails to repay the special loan
debts as prescribed in clause 4 of this Article, SBV shall:
a) Apply the interest rate equaling 130% of the
SBV’s pledged-asset lending rate announced on the ending date of the prescribed
repayment time limit on the unpaid principal for the period starting from the
date following the ending date of the prescribed repayment time limit and
ending on the day on which the borrower pays the unpaid principal;
b) Take out money from the borrower’s account
opened at SBV for collecting the debt payable by the borrower (including the
unpaid principal and the interest prescribed in point a of this clause) within
05 working days from the day on which the borrower fails to repay the special
loan debt (in case the borrower is a credit institution that is not placed
under special control and is subject to the microprudential supervision of a
SBV’s provincial branch) or within 05 working days from the date of its receipt
of the notice from the SBV Banking Supervision Agency (in case the borrower is
a credit institution that is not placed under special control and is subject to
the microprudential supervision of the SBV Banking Supervision Agency) or the
Special Control Board that the borrower fails to repay debts as prescribed in
clause 4 of this Article;
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Article 16. SBV’s
consideration and issuance of decision to grant special loan to credit
institution that is not placed under special control
1. When a credit institution that is not placed
under special control wishes to apply for a special loan, it shall prepare an
application which includes:
a) An application form for special loan which clearly
indicates the name of the credit institution, number of VND account opened at
SBV's provincial branch (if any), the reason for application which is bank run,
amount of the special loan (which shall not exceed total conversion value of
types of collateral included in the list specified in Point dd of this Clause),
proposed term, interest rate and collateral for the special loan, the special
loan purpose which is for paying depositors that are individuals, and
commitments to use the loan amount for stated purpose and to comply with
regulations of law on grant of special loans;
b) A report on bank run which clearly indicates the
credit institution’s solvency status, whether the credit institution is at risk
of insolvency or has become insolvent due to such bank run; whether the credit
institution has an approved remedial plan as prescribed in Articles 143, 158 of
the Law on Credit Institutions; if an approved remedial plan is available,
duration of the remedial plan, measures taken and to be taken to deal with the
bank run, contents about the special loan taken from SBV included in the
remedial plan (if any); explanations about the requested amount and term of the
special loan;
c) A statement of VND deposit balances which is
made according to Appendix I enclosed herewith;
d) A statement of funding sources in VND and use
thereof which is made according to Appendix II enclosed herewith;
dd) List of assets used as collateral for the
special loan which is made according to Appendix IIIA enclosed herewith;
e) The resolution on ratification of the
application for SBV’s special loan of the Board of Directors (in case the
credit institution is a joint-stock company and applies for a special loan
amount subject to the approval of its Board of Directors as prescribed in
clause 10 Article 70 of the Law on Credit Institutions); the resolution on
ratification of the application for SBV’s special loan of the Board of
Directors (in case the credit institution is Cooperative Bank of Vietnam or
people’s credit fund) or the Board of Members (in case the credit institution
is a limited liability company).
2. Submission of the application prescribed in
clause 1 of this Article:
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b) In case the credit institution is subject to the
microprudential supervision of a SBV’s provincial branch, it shall submit 02
packages of the application to SBV: 01 of which is sent to the SBV’s provincial
branch and the other is sent to the Financial Policy Department.
3. Within a maximum duration of 05 working days
from the receipt of an adequate application as prescribed in Clauses 1, 2 of
this Article, the SBV Banking Supervision Agency or the SBV’s provincial branch
shall give its written opinions to the Financial Policy Department about the
following contents:
a) The bank run faced by the credit institution and
tasks performed by the credit institution at the request of SBV to deal with
the bank run; the status of operation and solvency of the credit institution;
whether SBV makes early intervention in the credit institution;
b) Whether the credit institution has an approved
remedial plan; contents about the application for SBV’s special loan included
in the remedial plan (if any);
c) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the credit institution is responsible as prescribed in point dd clause 1
of this Article with the provisions of Article 14 of this Circular; whether the
credit institution has used all assets in clause 1 Article 13 hereof as
collateral (in case the credit institution wishes to provide the assets in
clause 2 Article 13 hereof as collateral);
d) Whether or not the special loan should be
granted to the credit institution. If the special loan should be granted, necessity
of grant of special loan, specific amount, term, interest rate, collateral and
purpose of the special loan must be specified. If the special loan should not
be granted, reasons thereof must be given.
4. In case the credit institution submits application
as prescribed in point b clause 2 of this Article, within a maximum duration of
02 working days from its receipt of adequate application as prescribed in
clause 1 of this Article and written opinions of the SBV’s provincial branch as
prescribed in clause 3 of this Article, the Financial Policy Department shall
send a written request to the SBV Banking Supervision Agency for its opinions.
This request must be accompanied with the application of the credit institution
and written opinions of the SBV’s provincial branch.
5. Within a maximum duration of 03 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, the SBV Banking
Supervision Agency shall provide the Financial Policy Department with its
written opinions about the proposal of the SBV’s provincial branch specified in
point d clause 3 of this Article.
6. If the credit institution’s list of assets used
as collateral includes valuable papers, within a maximum duration of 02 working
days from its receipt of adequate application as prescribed in clause 1 of this
Article, the Financial Policy Department shall send the list of assets used as
collateral to SBV’s Operations Center for its opinions.
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9. Within a maximum duration of 05 working days
from its receipt of adequate opinions from relevant agencies as prescribed in
Clauses 3, 5, 7 and 8 of this Article (if any), the Financial Policy Department
shall prepare and submit a consolidated report thereof to the SBV’s Governor
for considering and making decision to grant special loan to the credit
institution. If an application for special loan is rejected, SBV shall give a
written response indicating reasons for such rejection to the credit institution.
Article 17. SBV’s
consideration and issuance of decision to grant special loan to credit
institution that is placed under special control
1. When the credit institution placed under special
control wishes to apply for a special loan, it shall send 04 packages of
application for SBV’s special loan to the Special Control Board.
Such an application includes:
a) An application form for special loan which
clearly indicates the name of the credit institution, number of VND account
opened at SBV's provincial branch (if any), the reason for application which is
bank run, requested amount of the special loan (which shall not exceed total
conversion value of types of collateral included in the list specified in Point
dd of this Clause), proposed term, interest rate and collateral for the special
loan, the special loan purpose which is for paying depositors (whether
depositors are individuals and/or organizations), whether the credit
institution has an approved restructuring plan, and commitments to use the loan
amount for stated purpose and to comply with regulations of law on grant of
special loans;
b) A report on bank run which clearly indicates the
credit institution’s solvency status, whether the credit institution is at risk
of insolvency or has become insolvent due to such bank run; whether the credit
institution has an approved remedial plan as prescribed in Articles 143, 158 of
the Law on Credit Institutions; if an approved remedial plan is available,
duration of the remedial plan, measures taken and to be taken to deal with the
bank run, contents about the special loan taken from SBV included in the
remedial plan (if any); explanations about the requested amount and term of the
special loan;
c) A statement of VND deposit balances which is made
according to Appendix I enclosed herewith;
d) A statement of funding sources in VND and use
thereof which is made according to Appendix II enclosed herewith;
dd) List of assets used as collateral which is made
according to Appendix IIIA enclosed herewith;
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2. Within a maximum duration of 03 working days
from its receipt of adequate application as prescribed in clause 1 of this
Article, if the Special Control Board wishes to propose grant of special loan
to the credit institution, it shall send 02 packages of application to SBV (the
Financial Policy Department). If the credit institution is subject to
microprudential supervision of a SBV’s provincial branch, the Special Control
Board shall also send 01 other package of the application to this SBV’s
provincial branch.
Such packages of application must be also
accompanied with the Special Control Board’s document indicating:
a) its specific opinions about the bank run faced
by the credit institution; the status of operation and solvency of the credit
institution;
b) whether the credit institution has an approved
remedial plan; contents about the application for SBV’s special loan included
in the remedial plan (if any); whether the credit institution has an approved
restructuring plan;
c) its specific opinions about the fact the credit
institution has used all assets in clause 1 Article 13 hereof as collateral (in
case the credit institution wishes to provide the assets in clause 2 Article 13
hereof as collateral);
d) its proposal for grant of special loan to the
credit institution, and its specific opinions about the necessity of such grant
of special loan, and proposed amount, term, interest rate, collateral and
purpose of the special loan (if the special loan is intended for paying
depositors that are organizations, the Special Control Board shall give its
specific opinion that the special loan amount shall not be used for paying
depositors that are organizations significantly influencing the safe operation
of the credit institution).
3. Within a maximum duration of 02 working days
from its receipt of adequate application and written opinions specified in
Clauses 1, 2 of this Article, the relevant SBV's provincial branch shall give
its written opinions to the Financial Policy Department about the following
contents:
a) The bank run faced by the credit institution;
the status of operation and solvency of the credit institution;
b) Whether the credit institution has an approved remedial
plan (in case the credit institution is required to send an approved remedial
plan to the SBV’s provincial branch as prescribed); whether the credit
institution has an approved restructuring plan (in case the credit
institution’s restructuring plan is subject to decision of the SBV’s provincial
branch);
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d) Whether or not the special loan should be
granted to the credit institution. If the special loan should be granted,
necessity of such grant of special loan, specific amount, term, interest rate,
collateral and purpose of the special loan must be specified. If the special
loan should not be granted, reasons thereof must be given.
4. Within a maximum duration of 02 working days
from its receipt of an adequate application, written opinions as prescribed in
Clauses 1 and 2 of this Article, and written opinions prescribed in clause 3 of
this Article (in case the credit institution is subject to microprudential
supervision of the SBV’s provincial branch), the Financial Policy Department
shall send the application and such written opinions to the SBV Banking
Supervision Agency for its opinions. If the credit institution’s list of
assets used as collateral includes valuable papers, the Financial Policy
Department shall send the list of assets used as collateral to the SBV’s
Operations Center for its opinions.
5. Within a maximum duration of 07 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, the SBV Banking
Supervision Authority shall give its written opinions to the Financial Policy
Department about the following contents:
a) The bank run faced by the credit institution;
the status of operation and solvency of the credit institution (if the credit
institution is subject to the microprudential supervision of the SBV Banking
Supervision Authority);
b) Whether the credit institution has an approved
remedial plan (in case the credit institution is required to send an approved
remedial plan to the SBV Banking Supervision Authority as prescribed); contents
about the application for SBV’s special loan included in the remedial plan (if
any); whether the credit institution has an approved restructuring plan (except
the case where the credit institution’s restructuring plan is subject to
approval of the SBV’s provincial branch);
c) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the credit institution is responsible as prescribed in point dd clause 1
of this Article with the provisions of Article 14 of this Circular (except the
case where the credit institution is subject to microprudential supervision of
the SBV’s provincial branch);
d) Whether or not the special loan should be
granted to the credit institution that is subject to the microprudential
supervision of the SBV Banking Supervision Agency. If the special loan should
be granted, specific opinions about the necessity of such grant of special
loan, amount, term, interest rate, collateral and purpose of the special loan
must be specified. If the special loan should not be granted, reasons thereof
must be given;
dd) The proposal of the SBV’s provincial branch as
prescribed in Point d Clause 3 of this Article (in case the credit institution
is subject to microprudential supervision of the SBV’s provincial branch).
6. Within a maximum duration of 07 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, based on information on
the list of assets used as collateral which is provided by and for which the
credit institution is responsible as prescribed in point dd clause 1 of this
Article, the SBV’s Operations Center shall give its written opinions to the
Financial Policy Department about the collateral types which are valuable
papers included in the credit institution’s list of assets used as collateral,
including: type of valuable paper, ticker symbol, issuer, depository, methods
for payment of principal and interest, interest rate, date of issue, maturity
date, face value, value, and conversion value of the valuable paper.
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8. Within a maximum duration of 05 working days
from its receipt of adequate opinions from relevant agencies as prescribed in
Clause 3 (in case the credit institution is subject to microprudential
supervision of the SBV’s provincial branch), Clauses 5, 6 and 7 of this Article
(if any), the Financial Policy Department shall prepare and submit a
consolidated report thereof to the SBV’s Governor for considering and making
decision to grant special loan. If an application for special loan is rejected,
SBV shall give a written response indicating reasons for such rejection to the
credit institution.
Article 18. SBV’s
consideration and issuance of decision to grant extension of special loan term
to credit institution that is not placed under special control
1. When a borrower wishes to apply for extension of
special loan term, it shall submit 02 packages of the application for extension
of special loan term to SBV (the Financial Policy Department) at least 40
working days before the special loan becomes due. If the borrower is subject to
microprudential supervision of a SBV’s provincial branch, it shall be required
to send 01 other package of the application to this SBV’s provincial branch.
Such an application includes:
a) An application form for extension of special
loan term which clearly indicates the name of the credit institution, number of
VND account opened at a SBV’s provincial branch, reasons, the amount requiring
extension (which shall not exceed total conversion value of types of collateral
included in the list of assets used as collateral specified in Point dd of this
Clause), term, interest rate and collateral for the special loan amount requiring
extension, and commitments to comply with regulations of law on grant of
special loans;
b) A report on the borrower’s solvency status; the
borrower’s implementation of measures for dealing with the bank run, including those
included in the approved remedial plan as prescribed in Articles 143, 158 of
the Law on Credit Institutions; measures to be taken to deal with the bank run
and repay the special loan; explanations about the special loan amount
requiring extension and expected extension period;
c) A statement of funding sources in VND and use
thereof which is made according to Appendix II enclosed herewith;
d) List of assets used as collateral which is made
according to Appendix IIIA enclosed herewith.
dd) The resolution on ratification of the
application for extension of term of the special loan obtained from SBV of the
Board of Directors (in case the borrower is a joint-stock company and applies
for extension of term of a special loan amount subject to the approval of its
Board of Directors as prescribed in clause 10 Article 70 of the Law on Credit
Institutions); the resolution on ratification of the application for extension
of term of the special loan obtained from SBV of the Board of Directors (in
case the borrower is Cooperative Bank of Vietnam or people’s credit fund) or
the Board of Members (in case the borrower is a limited liability company).
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a) The status of operation and solvency of the
borrower; the borrower’s implementation of measures for dealing with the bank
run; whether SBV is making early intervention in the borrower;
b) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the borrower is responsible as prescribed in point d clause 1 of this
Article with the provisions of Article 14 of this Circular; whether the
borrower has used all assets in clause 1 Article 13 hereof as collateral (in
case the borrower wishes to provide the assets in clause 2 Article 13 hereof as
collateral);
c) Whether or not the extension of special loan
term should be granted. If the extension of special loan term should be
granted, reasons for proposal to grant extension of special loan term, amount,
term, interest rate, collateral for the special loan. If the extension of
special loan term should not be granted, reasons thereof must be given.
3. Within a maximum duration of 02 working days
from its receipt of an adequate application as prescribed in clause 1 of this
Article, and written opinions as prescribed in Clause 2 of this Article (in
case the borrower is subject to microprudential supervision of the SBV’s
provincial branch), the Financial Policy Department shall send the application
and such written opinions (if any) to the SBV Banking Supervision Agency for
its opinions. If the borrower’s list of assets used as collateral
includes valuable papers, the Financial Policy Department shall send the list
of assets used as collateral to the SBV’s Operations Center for its opinions.
4. Within a maximum duration of 07 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 3 of this Article, the SBV Banking
Supervision Authority shall give its written opinions to the Financial Policy
Department about the following contents:
a) The status of operation and solvency of the
borrower; the borrower’s implementation of measures for dealing with the bank
run; whether SBV is making early intervention in the borrower (in case the borrower
is subject to microprudential supervision of the SBV Banking Supervision
Authority);
b) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the borrower is responsible as prescribed in point d clause 1 of this
Article with the provisions of Article 14 of this Circular; whether the
borrower has used all assets in clause 1 Article 13 hereof as collateral (in
case the borrower wishes to provide the assets in clause 2 Article 13 hereof as
collateral) (except the case where the borrower is subject to microprudential
supervision of the SBV’s provincial branch);
c) Whether or not the extension of special loan
term should be granted to the borrower that is subject to microprudential
supervision of the SBV Banking Supervision Authority. If the extension of
special loan term should be granted, reasons for proposal to grant extension of
special loan term, amount, term, interest rate, collateral for the special
loan. If the extension of special loan term should not be granted,
reasons thereof must be given;
d) The proposal of the SBV’s provincial branch as
prescribed in Point c Clause 2 of this Article (in case the borrower is subject
to microprudential supervision of the SBV’s provincial branch).
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6. If written opinions given by requested agencies
are not adequate as prescribed in this Article, within a maximum duration of 03
working days from the receipt of such written opinions, the Financial Policy
Department shall send written request to relevant agencies for additional
opinions. Within a maximum duration of 07 working days from the receipt
of the written request from the Financial Policy Department, requested agencies
must provide their additional opinions as requested.
7. Within a maximum duration of 07 working days
from its receipt of adequate opinions from relevant agencies as prescribed in
Clause 2 (in case the borrower is subject to microprudential supervision of the
SBV’s provincial branch), Clauses 4, 5 and 6 of this Article (if any), the
Financial Policy Department shall prepare and submit a consolidated report
thereof to the SBV’s Governor for considering and making decision to grant
extension of special loan term. If an application for extension of special loan
term is rejected, SBV shall give a written response indicating reasons for such
rejection to the borrower.
Article 19. SBV’s
consideration and issuance of decision to grant extension of special loan term
to credit institution that is placed under special control
1. When a borrower wishes to apply for extension of
special loan term before obtaining approval for its restructuring plan or for
changes to its restructuring plan, it shall submit 04 packages of the
application for extension of special loan term to the Special Control Board at
least 40 working days before the special loan becomes due.
Such an application includes:
a) An application form for extension of special
loan term which clearly indicates the name of the credit institution, number of
VND account opened at a SBV’s provincial branch, reasons, the amount requiring
extension (which shall not exceed total conversion value of types of collateral
included in the list of assets used as collateral specified in Point d of this
Clause), term, interest rate and collateral for the special loan amount
requiring extension, whether the borrower has an approved restructuring plan,
and commitments to comply with regulations of law on grant of special loans;
b) A report on the borrower’s solvency status; the
borrower’s implementation of measures for dealing with the bank run, including
those included in the approved remedial plan as prescribed in Articles 143, 158
of the Law on Credit Institutions; measures to be taken to deal with the bank
run and repay the special loan; the plan for settling existing special loans
included in the restructuring plan submitted to SBV (if any), and explanations
about the special loan amount requiring extension and expected extension
period;
c) A statement of funding sources in VND and use
thereof which is made according to Appendix II enclosed herewith;
d) List of assets used as collateral which is made
according to Appendix IIIA enclosed herewith;
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2. Within a maximum duration of 03 working days
from its receipt of adequate application as prescribed in clause 1 of this
Article, if the Special Control Board wishes to propose grant of extension of
special loan term to the borrower, it shall send 02 packages of the application
to SBV (via the Financial Policy Department). If the borrower is subject to
microprudential supervision of a SBV’s provincial branch, the Special Control
Board shall also send 01 other package of the application to this SBV’s
provincial branch.
Such packages of application must be also
accompanied with the Special Control Board’s document indicating:
a) Its opinions about the status of operation and
solvency of the borrower; the borrower’s implementation of measures for dealing
with the bank run; specific opinions about the fact that the borrower has used
all assets in clause 1 Article 13 hereof as collateral (in case the borrower
wishes to provide the assets in clause 2 Article 13 hereof as collateral);
b) Its opinions about the fact that the borrower
has not yet obtained approval for its restructuring plan or for changes to its
restructuring plan; the plan for settling existing special loans included in the
restructuring plan submitted to SBV (if any);
c) Its proposal for grant of extension of special
loan term to the borrower, reasons for such proposal; proposed amount, interest
rate, term and collateral.
3. Within a maximum duration of 03 working days from
its receipt of adequate application and written opinions specified in Clauses
1, 2 of this Article, the relevant SBV's provincial branch shall give its
written opinions to the Financial Policy Department about the following
contents:
a) The status of operation and solvency of the
borrower; the borrower’s implementation of measures for dealing with the bank
run;
b) Whether the borrower has an approved
restructuring plan; the plan for settling existing special loans included in
the restructuring plan submitted to SBV (if any) (in case the borrower’s
restructuring plan is subject to approval of the SBV’s provincial branch);
c) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the borrower is responsible as prescribed in point d clause 1 of this
Article with the provisions of Article 14 of this Circular;
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4. Within a maximum duration of 02 working days
from its receipt of an adequate application, written opinions as prescribed in
Clauses 1 and 2 of this Article, and written opinions prescribed in clause 3 of
this Article (in case the borrower is subject to microprudential supervision of
the SBV’s provincial branch), the Financial Policy Department shall send the
application and such written opinions to the SBV Banking Supervision Agency for
its opinions. If the borrower’s list of assets used as collateral
includes valuable papers, the Financial Policy Department shall send the list
of assets used as collateral to the SBV’s Operations Center for its opinions.
5. Within a maximum duration of 07 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, the SBV Banking
Supervision Authority shall give its written opinions to the Financial Policy
Department about the following contents:
a) The status of operation and solvency of the
borrower; the borrower’s implementation of measures for dealing with the bank
run (in case the borrower is subject to microprudential supervision of the SBV
Banking Supervision Authority);
b) Whether the borrower has an approved
restructuring plan, and the plan for settling existing special loans included
in the restructuring plan submitted to SBV (in case the borrower’s
restructuring plan is subject to approval of the SBV’s provincial branch);
c) The conformity of information on collateral
included in the list of assets used as collateral which is provided by and for
which the borrower is responsible as prescribed in point d clause 1 of this
Article with the provisions of Article 14 of this Circular (except the case
where the borrower is subject to microprudential supervision of the SBV’s
provincial branch);
d) Whether or not the extension of special loan
term should be granted to the borrower that is subject to microprudential
supervision of the SBV Banking Supervision Authority. If the extension of
special loan term should be granted, specific opinions about the amount, term,
interest rate and collateral. If the extension of special loan term should not
be granted, reasons thereof must be given;
dd) The proposal of the SBV’s provincial branch as
prescribed in Point d Clause 3 of this Article (in case the borrower is subject
to microprudential supervision of the SBV’s provincial branch).
6. Within a maximum duration of 07 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, based on information on
the list of assets used as collateral which is provided by and for which the
borrower is responsible as prescribed in point d clause 1 of this Article, the
SBV’s Operations Center shall give its written opinions to the Financial Policy
Department about the collateral types which are valuable papers included in the
borrower’s list of assets used as collateral, including: type of valuable
paper, ticker symbol, issuer, depository, methods for payment of principal and
interest, interest rate, date of issue, maturity date, face value, value, and
conversion value of the valuable paper.
7. If written opinions given by requested agencies
are not adequate as prescribed in this Article, within a maximum duration of 03
working days from the receipt of such written opinions, the Financial Policy
Department shall send written request to relevant agencies for additional
opinions. Within a maximum duration of 07 working days from the receipt
of the written request from the Financial Policy Department, requested agencies
must provide their additional opinions as requested.
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Article 20. Conclusion of
special loan agreements, acceptance of pledged or mortgaged collateral, and
disbursement of special loans
1. Conclusion of special loan agreement and
acceptance of pledged or mortgaged collateral:
a) Within a maximum duration of 02 working days
from their receipt of the SBV’s Decision to grant special loan, the Director of
the relevant SBV’s provincial branch shall, based on this Decision and
regulations of relevant laws, conclude a special loan agreement which includes
contents about acceptance of pledged or mortgaged collateral.
In case the collateral is the debt claim/interests
receivable as prescribed in clause 2 Article 13 of this Circular, the borrower
shall retain all line of credit-related documents from which the debt
claim/interests receivable arise according to guidelines given by the SBV’s
provincial branch (if the borrower is a credit institution that is not placed
under special control) or the Special Control Board (if the borrower is a
credit institution that is placed under special control);
b) If the collateral for the special loan includes
valuable papers, within 01 working day from the conclusion of the special loan
agreement, the SBV’s provincial branch shall send the signed special loan
agreement to the SBV’s Operations Center;
c) Within 02 working days from its receipt of the
signed special loan agreement, the SBV’s Operations Center shall carry out
accounting and pledge of the collateral which is valuable papers included in
the list of assets used as collateral enclosed with the signed special loan
agreement, and give a written notice of completion of such actions to the SBV’s
provincial branch.
2. Disbursement of special loan to a credit
institution that is not placed under special control:
a) When the borrower wishes to receive disbursement
of the special loan, it shall send a written request for disbursement, which
clearly indicates the amount, time and reasons for disbursement, to the SBV’s
provincial branch;
b) The SBV’s provincial branch shall disburse the
special loan according to the signed special loan agreement and the borrower’s
disbursement request;
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3. Disbursement of special loan to a credit
institution that is placed under special control:
a) When the borrower wishes to receive disbursement
of the special loan, it shall send a written request for disbursement, which
clearly indicates the amount, time and reasons for disbursement, to the Special
Control Board;
b) Based on the borrower’s demand for use of special
loan, the special control board shall consider giving opinions about the
borrower’s disbursement request. If the borrower’s disbursement request is
approved, within 02 working days from its receipt of the request, the Special
Control Board shall send a document indicating the amount and time of
disbursement and the borrower’s disbursement request to the relevant SBV’s
provincial branch;
c) Based on the signed special loan agreement, within
02 working days from its receipt of adequate documents from the Special Control
Board as prescribed in point b of this clause and a notice from the SBV’s
Operations Center as prescribed in point c clause 1 of this Article (if any),
the SBV’s provincial branch shall disburse the special loan;
d) The SBV’s provincial branch shall only disburse
the special loan after completing procedures for receipt of collateral.
Chapter III
SBV’S GRANT OF SPECIAL
LOANS FOR IMPLEMENTATION OF RESTRUCTURING PLANS
Article 21. Purposes of
special loans
Borrowers are allowed to use special loans for
performing banking operations and other business operations as prescribed in
their Licenses and recovery plans/mandatory transfer plans in accordance with
the Law on Credit Institutions 2024.
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1. SBV shall consider deciding the amount and term
of each special loan granted on the basis of the actual financial health of the
credit institution that applies for the special loan (applicant), objectives
and duration of the recovery plan/mandatory transfer plan as prescribed in the
Law on Credit Institutions 2024, assisting measures, and financial and business
plans of the applicant as prescribed in the Law on Credit Institutions 2024.
2. The term of a special loan shall not exceed the
duration of the relevant recovery plan/mandatory transfer plan as prescribed in
the Law on Credit Institutions 2024.
Article 23. Interest rates
1. The rate of interest on a special loan equals to
the SBV’s pledged-asset lending rate announced at the date of disbursement of
the special loan.
2. The interest rate charged on the overdue
principal of a special loan shall be 130% of the interest rate charged on the
last due repayment.
3. No interest will be charged on late payment of
outstanding interests.
Article 24. Collateral and
requirements attached to collateral
1. Collateral includes those assets prescribed in
clause 1, point a clause 2 Article 13 of this Circular.
2. Eligibility requirements attached to collateral
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b) Collateral that is valuable papers prescribed in
point b clause 1 Article 13 of this Circular must meet all requirements laid
down in points a, b, c clause 1 Article 14 of this Circular;
c) Collateral that is bonds prescribed in point c
clause 1 Article 13 of this Circular must meet all requirements laid down in
points a, b, c clause 1 Article 14 of this Circular and be secured by assets;
d) For the collateral that is debt claim, the loan
under the line of credit agreement or contract from which the debt claim arises
must be granted in VND, secured by assets and classified as group-1 debt
(standard debts) in accordance with SBV’s regulations on classification of
assets of credit institutions, excluding loans which are rescheduled according
to SBV’s regulations.
3. Value of collateral:
a) The value of the types of collateral specified
in Clause 1 of this Article shall be determined according to the provisions of
Appendix IV enclosed herewith;
b) At the time of application for a special loan,
the credit institution must ensure that total value or total conversion value
(if prescribed in the recovery plan/mandatory transfer plan) of types of
eligible collateral shall not be smaller than the special loan amount that it
applies for.
4. Addition or replacement assets used as
collateral
a) If any asset used as collateral does not meet
the requirements laid down in Clause 2 of this Article resulting in the
circumstance that total value or total conversion value of eligible collateral
is smaller than the outstanding principal of the special loan, the borrower
shall be required to replace the existing assets used as collateral and/or
provide additional assets as collateral to ensure that total value or total
conversion value of eligible collateral shall not be smaller than the
outstanding principal of the special loan.
b) Monitoring and assessment of satisfaction of
eligibility requirements of assets used as collateral, procedures for
addition/replacement of assets used as collateral (including the case where
additional collateral is provided to serve the disbursement of the special loan)
shall comply with the borrower’s recovery plan/mandatory transfer plan
prescribed in the Law on Credit Institutions 2024.
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1. When a special loan becomes due according to the
roadmap in the approved recovery plan/mandatory transfer plan prescribed in the
Law on Credit Institutions 2024, the borrower shall be required to fully repay
both principal and interest on the special loan to SBV.
2. The borrower may also repay the special loan debts
(principal and interest) before maturity date without incurring early repayment
charges.
3. In case the borrower fails to provide additional
assets/replace existing assets used as collateral as prescribed in clause 4
Article 24 of this Circular, the borrower shall repay a principal amount which
is not smaller than the difference between the outstanding principal of the
special loan and total value or total conversion value of eligible collateral.
The deadline for debt repayment shall comply with the borrower's recovery
plan/mandatory transfer plan prescribed in the Law on Credit Institutions 2024.
4. In case a special loan amount is found to be
used for the purposes other than the approved loan purpose, the borrower shall
make debt repayments as follows:
a) The amount repayable includes the special loan
amount which has been improperly used and the interest on this improperly used
special loan amount which is calculated at the rate equaling 130% of the SBV’s
pledged-asset lending rate;
b) The debt repayment deadline and method for
calculation of the interests payable shall comply with the borrower's recovery
plan/mandatory transfer plan prescribed in the Law on Credit Institutions 2024.
5. In case the borrower fails to repay debts as
prescribed in clause 1, 3 or 4 of this Article, SBV shall:
a) In case the borrower fails to repay debts as
prescribed in Clause 1 of this Article, SBV shall monitor the outstanding debt
of the special loan as an overdue debt, and charge interest at the interest
rate specified in Clause 2 Article 23 of this Circular on the principal amount
which is not repaid by the due date in accordance with SBV’s regulations on
methods for calculation and accounting of revenues and payment of interests in
depositing and lending operations between SBV and credit institutions;
b) In case the borrower fails to repay debts as
prescribed in Clause 3 of this Article, SBV shall apply the interest rate
equaling 130% of the SBV’s pledged-asset lending rate announced on the ending
date of the prescribed time limit for addition/replacement of assets used as
collateral on the unpaid principal for the period starting from the date
following the debt repayment deadline and ending on the day on which the
borrower pays the unpaid principal;
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d) Request the borrower to transfer the ownership
of collateral which is the valuable papers specified in Point a Clause 1
Article 13 of this Circular to SBV;
dd) Take measures, as prescribed by law, for
disposition of the collateral prescribed in Clause 1 Article 13 of this
Circular;
e) Collect the special loan debts (including
principal and interest) from the borrower’s proceeds from disposition of the
collateral specified in Points b, c Clause 1 and Clause 2 Article 13 of this
Circular;
g) Collect the special loan debts (including
principal and interest) from the borrower’s other funding sources (if any).
6. With regard to a special loan used for paying
purchase prices of debts and other assets of the assisting credit institution
or transferee under an approved recovery plan or mandatory transfer plan as
prescribed in the Law on Credit Institutions 2024, if the borrower fails to
repay debts as prescribed in clauses 1, 3 or 4 of this Article, SBV, the
assisting credit institution or transferee under mandatory transfer plan shall,
in addition to the measures prescribed in clause 5 of this Article, take the
following measures:
a) The assisting credit institution or transferee
under mandatory transfer plan shall consider granting loans to and/or purchase
assets of the borrower, and implement other measures so that the borrower may
have sufficient money for repaying the special loan to SBV. The time limit for
implementing these measures shall comply with the borrower’s recovery
plan/mandatory transfer plan as prescribed in the Law on Credit Institutions
2024;
b) SBV shall take out money from the account,
opened at SBV, of the assisting credit institution or transferee under
mandatory transfer plan that is a domestic credit institution for collecting
the special loan debt in case the assisting credit institution or transferee
under mandatory transfer plan fails to implement the measures in point a of
this clause; taking out money from the account of assisting credit institution
or transferee under mandatory transfer plan shall start from the date following
the end of the time limit for implementing the measures prescribed in point a
of this clause until the debt is collected in full.
Article 26. Procedures for
grant of special loan by SBV for implementing approved recovery plan or
mandatory transfer plan
1. After obtaining approval of its mandatory transfer
plan under the Law on Credit Institutions 2024, mandatory transfer plan under
the Law on Credit Institutions 2010 (hereinafter referred to as “mandatory
transfer plan”) or recovery plan, the credit institution that is placed under
special control and wishes to apply for a special loan shall send 04 packages
of the application for SBV’s special loan to the Special Control Board.
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a) An application form for special loan which
clearly indicates the name of the credit institution, number of VND account
opened at SBV's provincial branch (if any), amount, purpose of the special
loan, collateral, interest rate, term, and repayment of special loan debt, and
commitments to use the loan amount for the stated purpose and to comply with
regulations of law on grant of special loans as well as contents on the
application for special loan in the approved recovery plan or mandatory
transfer plan;
b) List of assets used as collateral for the
special loan which is made according to Appendix IIIB enclosed herewith.
2. Within a maximum duration of 02 working days
from its receipt of an application consisting of adequate documents as
prescribed in clause 1 of this Article, if the Special Control Board wishes to
propose grant of special loan to the credit institution, it shall send 02
packages of the application to SBV (via the Financial Policy Department). If
the special loan is intended to implement a recovery plan subject to approval
of a SBV’s provincial branch, the Special Control Board shall also send 01
package of the application to that SBV’s provincial branch.
Such packages of application must be also
accompanied with the Special Control Board’s proposal for amount, purpose,
collateral, interest rate, term and repayment of special loan debt.
3. Within a maximum duration of 03 working days
from its receipt of adequate application and written opinions specified in
Clauses 1, 2 of this Article, the relevant SBV's provincial branch shall give
its written opinions to the Financial Policy Department about the following
contents:
a) The conformity of the credit institution’s
application prescribed in clause 1 of this Article with the contents about the
special loan included in the approved recovery plan;
b) Whether or not the special loan should be
granted to the credit institution. If the special loan should be granted,
specific opinions about the amount, purpose, collateral, interest rate, term
and repayment of special loan debt must be specified. If the special loan
should not be granted, reasons thereof must be given.
4. Within a maximum duration of 02 working days
from its receipt of an adequate application, written opinions as prescribed in
Clauses 1 and 2 of this Article, and written opinions prescribed in clause 3 of
this Article (in case the recovery plan is subject to approval of a SBV’s
provincial branch), the Financial Policy Department shall send the application
and such written opinions to the SBV Banking Supervision Agency for its
opinions. If the credit institution’s list of assets used as collateral
includes valuable papers, the Financial Policy Department shall send this list
to the SBV’s Operations Center for its opinions.
5. Within a maximum duration of 05 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, the SBV Banking
Supervision Agency shall give its written response to the Financial Policy
Department. Such response shall:
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b) Whether or not the special loan should be
granted to the credit institution. If the special loan should be granted,
specific opinions about the amount, purpose, collateral, interest rate, term
and repayment of special loan debt must be specified. If the special loan
should not be granted, reasons thereof must be given (except the case where the
recovery plan is subject to approval of a SBV’s provincial branch);
c) The proposal of the SBV’s provincial branch as
prescribed in point b clause 3 of this Article (in case the recovery plan is
subject to approval of a SBV’s provincial branch).
6. Within a maximum duration of 05 working days
from its receipt of the written request for opinions from the Financial Policy
Department as prescribed in Clause 4 of this Article, based on information on
the list of assets used as collateral which is provided by and for which the
credit institution is responsible as prescribed in point b clause 1 of this
Article, the SBV’s Operations Center shall give its written opinions to the
Financial Policy Department about the collateral types which are valuable
papers included in the credit institution’s list of assets used as collateral,
including: type of valuable paper, ticker symbol, issuer, depository, methods
for payment of principal and interest, interest rate, date of issue, maturity
date, face value, value, and conversion value of the valuable paper.
7. If written opinions given by requested agencies
are not adequate as prescribed in this Article, within a maximum duration of 02
working days from its receipt of such written opinions, the Financial Policy
Department shall give written request to such agencies for their additional
opinions. Within a maximum duration of 03 working days from the receipt
of written request from the Financial Policy Department, requested agencies
must provide their additional opinions as requested.
8. Within a maximum duration of 05 working days
from its receipt of adequate opinions from relevant agencies as prescribed in
Clause 3 (in case the recovery plan is subject to approval of a SBV’s
provincial branch), clauses 5, 6 and 7 of this Article (if any), the Financial
Policy Department shall prepare and submit a consolidated report thereof to the
SBV’s Governor for considering and making decision to grant special loan to the
credit institution.
9. Within a maximum duration of 35 working days
from its receipt of an adequate application of the borrower as prescribed in
clause 1 of this Article and written opinions of the Special Control Board as
prescribed in clause 2 of this Article, SBV shall make a Decision to grant
special loan. If an application for special loan is rejected, SBV shall give a
written response indicating reasons for such rejection to the credit
institution.
Article 27. Conclusion of special
loan agreements, acceptance of pledged or mortgaged collateral, and
disbursement of special loans
1. Conclusion of special loan agreements,
acceptance of pledged or mortgaged collateral, and disbursement of special
loans shall comply with clauses 1 and 3 Article 20 of this Circular, except
provisions of clause 2 of this Article.
2. In case the collateral is the debt claim, line
of credit-related documents from which the debt claim arises shall be managed
and retained according to the borrower’s approved recovery plan or mandatory
transfer plan.
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Chapter IV
GRANT OF SPECIAL LOANS
BY OTHER CREDIT INSTITUTIONS
Article 28. Procedures for
grant of special loans and extension of special loan term to credit
institutions facing bank run
1. The credit institution that wishes to apply for
a special loan as prescribed in Point a Clause 2 or Point a Clause 3 Article 4
of this Circular (borrowing credit institution) shall send an application to
another credit institution (lending credit institution).
Such an application includes:
a) The documents as prescribed in internal
regulations of the lending credit institution on grant of special loans to
credit institutions;
b) The document sent by the Special Control Board
to the lending credit institution. Such document shall include opinions on the
fact that the borrowing credit institution is facing the bank run, the status
of operation and solvency of the borrowing credit institution (in case the
borrowing credit institution is placed under special control).
2. Within a maximum duration of 05 working days
from its receipt of an adequate application as prescribed in clause 1 of this
Article, if the lending credit institution approves the application, it shall
send the application prescribed in clause 1 of this Article to the relevant
SBV’s provincial branch (in case the borrowing credit institution is subject to
the microprudential supervision of this SBV’s provincial branch) or to the SBV
Banking Supervision Agency (in case the borrowing credit institution is subject
to the microprudential supervision of the SBV Banking Supervision Agency) for
their opinions about the following contents:
a) The bank run faced by the borrowing credit
institution;
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3. Where necessary, SBV Banking Supervision Agency
may get opinions from the relevant SBV’s provincial branch before giving its
opinions to the lending credit institution.
4. The lending credit institution shall consider
making decision on the application for special loan submitted by the borrowing
credit institution.
5. In case of extension of special loan term
specified in Point a Clause 2, Point a Clause 3 Article 4 of this Circular:
a) The borrower shall send an application to the
lender.
Such an application includes the documents as
prescribed in the lender’s internal regulations on grant of special loans to
credit institutions, and the proposal for grant of extension of special loan
term sent by the Special Control Board to the lender (in case the borrower is a
credit institution that is placed under special control). This proposal
includes contents on the status of operation and solvency of the borrower, the
borrower's implementation of measures for dealing with the bank run, and the
plan for settling existing special loan included in the restructuring plan
submitted to SBV (if any);
b) The lender shall consider deciding the grant of
extension of special loan term to the borrower.
Article 29. Procedures for
grant of special loan and extension of special loan term for implementing
approved recovery plan or mandatory transfer plan
1. When a credit institution wishes to apply for a
special loan or extension of special loan term as prescribed in Point b Clause
2, Points b, c Clause 3 Article 4 of this Circular (borrowing credit
institution), it shall send an application to another credit institution
(lending credit institution).
Such an application includes:
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b) The proposal for grant of special loan or
extension of special loan term sent by Special Control Board to the lending
credit institution. This proposal includes contents about the application for
special loan included in the borrower's approved recovery plan or mandatory
transfer plan under the Law on Credit Institutions 2024.
2. The lending credit institution shall consider
making decision to grant special loan or extension of special loan term in
conformity with its internal regulations on grant of special loans to credit
institutions, and the borrower's approved recovery plan or mandatory transfer
plan under the Law on Credit Institutions 2024.
Chapter V
IMPLEMENTATION
Article 30. Borrower’s
responsibilities
1. Provide documents concerning the special loan to
the lender in an adequate, timely and accurate manner; assume legal
responsibility for the accuracy and legitimacy of such provided documents;
assume responsibility for compliance with regulations of law on extension of
credit operations in respect of line of credit agreements/contracts from which
debt claims/interests receivable used as collateral arise (in case such debt
claims/interests receivable are purchased from an assisting credit institution
or transferee under mandatory transfer plan).
2. Assume responsibility for:
a) The satisfaction of the assets used as
collateral for SBV’s special loan with the eligibility requirements laid down
in Article 14 or 24 of this Circular;
b) Use the types of assets specified in Clause 2
Article 13 of this Circular as collateral for the special loan only after
having used all types of assets specified in Clause 1 Article 13 of this
Circular as collateral (in case of application for special loan as prescribed
in point a clause 1 Article 4 of this Circular).
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4. During the special loan term, the borrower
shall:
a) Not use the assets used as collateral for
special loan for other purposes;
b) Monitor and evaluate the satisfaction of
eligibility requirements by the assets used as collateral for special loan;
add/replace assets used as collateral; manage and retain line of credit-related
documents from which debt claims/interests receivable used as collateral for
the special loan arise as prescribed in this Circular.
5. Submit reports to the Special Control Board (in
case the borrower is a credit institution placed under special control) or the
relevant SBV’s provincial branch (in case the borrower is a credit institution
that is not placed under special control and subject to microprudential
supervision of the SBV’s provincial branch) or the SBV Banking Supervision
Agency (in case the borrower is a credit institution that is not placed under
special control and subject to microprudential supervision of the SBV Banking
Supervision Agency) on:
a) The case where the assets used as collateral
fail to meet eligibility requirements laid down in Clause 4 Article 13, point a
clause 4 Article 24 of this Circular or where all types of assets specified in
Clause 1 Article 13 of this Circular have been provided as collateral;
b) The amount of debts collected as prescribed in
Point a Clause 4 Article 15 of this Circular within 03 working days from the
collection date;
c) Special loan debt repayment within 02 working
days from the repayment date;
d) Promptly submit reports on any issues concerning
the special loan and recommended solutions.
6. Dispose of collateral for repaying special loan
debts to the lender.
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a) The relevant SBV’s provincial branch (if the
special loan is granted by SBV);
b) The lender (if the special loan is granted by
another credit institution).
8. Discharge other responsibilities as prescribed
in this Circular, relevant laws, the signed special loan agreement and contents
on application for special loan included in the borrower’s approved
restructuring plan or mandatory transfer plan under the Law on Credit
Institutions 2010.
Article 31. Responsibilities
of assisting credit institutions and transferees under mandatory transfer plans
1. Discharge the responsibilities prescribed in
Point a Clause 6 Article 25 of this Circular.
2. Cooperate at the request of the Special Control
Boards in implementing the provisions of Article 33 of this Circular (in case a
special loan is granted to serve the implementation of a recovery plan or
mandatory transfer plan).
Article 32. Responsibilities
of credit institutions granting special loans
1. Consider issuing decisions on grant of special
loans or extension of special loan term to borrowing credit institutions in accordance
with this Circular; submit reports to SBV (via the agency whose opinions are
obtained as prescribed in clause 2 Article 28 of this Circular) on approval of
or refusal to approve applications for special loans.
2. Issue internal regulations on grant of special
loans to credit institution, which include contents about consideration and
issuance of decisions to grant special loan, extension of special loan term,
disbursement, debt collection, collateral and disposition of collateral.
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a) Play the leading role in supervising the
borrowers’ use of the granted special loan amounts;
b) Expedite and request borrowers to repay special
loan debts in accordance with regulations of this Circular, approved
restructuring plans and signed special loan agreements.
c) Receive and dispose of collateral as agreed upon
with borrowers and in accordance with regulations of law on security for
fulfillment of obligations;
d) Within the first 07 working days of the month
following the month in which outstanding special loan debt is incurred or any
changes in the special loan occur, submit reports (made according to Appendix
VI enclosed herewith) to SBV.
4. Perform other responsibilities as prescribed in
this Circular and relevant laws.
Article 33. Responsibilities
of Special Control Boards
1. Play the leading role in supervising borrowers’
use of the special loan amounts granted by SBV. If a borrower is found to have
used the special loan for the purposes other than the approved loan purpose,
the Special Loan Board shall give a written notice to SBV.
2. Play the leading role in supervising revenues of
borrowers (including proceeds from the collateral for the special loan) for
proposing SBV’s collection of special loan debts; expedite and request
borrowers to dispose of the collateral and repay the special loan debts
according to this Circular.
3. Propose collection of debts from the special
loans granted by SBV and collection measures to the SBV’s Governor.
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5. Notify the relevant SBV's provincial branch in
writing of the borrower's failure to repay the special loan debts as prescribed
in clause 4 Article 15, clause 3 Article 25 of this Circular; notify the SBV’s
Operations Center in writing of the failure of the assisting credit
institutions or transferee under mandatory transfer plan to implement
provisions of point a clause 6 Article 25 of this Circular.
6. Promptly submit reports to the SBV’s Governor on
any issues concerning the special loans granted by SBV and recommended
solutions.
7. Perform other responsibilities as prescribed in
this Circular and relevant laws.
Article 34. Responsibilities
of SBV’s affiliated units
1. The Financial Policy Department shall:
a) play the leading role in requesting the SBV's
Governor to consider making decisions to grant special loan or extension of
special loan term and decisions on modifications to Decision to grant special
loan in accordance with this Circular;
b) prepare and monthly submit consolidated report
on special loans granted by SBV to the SBV’s Governor;
c) play the leading role in requesting the SBV’s
Governor to respond to issues concerning the provisions of this Circular.
2. The SBV Banking Supervision Agency shall:
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b) discharge the responsibilities as prescribed in
Article 33 of this Circular in case of a special loan granted by SBV to a
credit institution that is subject to microprudential supervision of the SBV
Banking Supervision Agency and is not placed under special control;
c) play the leading role in requesting the SBV’s
Governor to consider making decisions or requesting competent authorities to
make decisions on proposals of Special Control Boards as prescribed in Clause 3
Article 33 of this Circular;
d) supervise, inspect and, within its competence,
take actions against violations committed by the credit institutions that are
subject to the microprudential supervision of the SBV Banking Supervision
Agency during the implementation of this Circular;
dd) If a credit institution that is subject to the
microprudential supervision of SBV’s Banking Supervision Agency is found to
have used the special loan for the purposes other than the approved loan
purpose as notified by a competent authority or through inspection, the SBV’s
Banking Supervision Agency shall give written notice of violation to the
borrower, the relevant SBV’s provincial branch, the Special Control Board (if
any), and the Financial Policy Department; such notice must indicate details
about the borrower’s failure to use the special loan for approved purpose.
3. The SBV’s Operations Center shall:
a) give opinions about grant of special loans or
extension of special loan term as prescribed herein;
b) based on the Decision to place a credit
institution under special control, do accounting for converting that credit
institution’s refinancing loan recorded at the SBV’s Operations Center into its
special loan; continue performing responsibilities for this special loan
according to the mechanism for granting the relevant refinancing loan;
c) carry out accounting and pledge of collateral
which is valuable papers; release the collateral which is valuable papers upon
receipt of a written notice from the relevant SBV’s provincial branch of full
collection of the special loan principal and interest; comply with provisions
of points c, d clause 6 Article 15, points d, dd clause 5, point b clause 6
Article 25 of this Circular;
d) cooperate with the SBV’s provincial branch in
carrying out addition/replacement of assets used as collateral as prescribed in
this Circular; give written notification to the SBV’s provincial branch of
recording and pledge of the collateral which is valuable papers additionally
provided by the borrower;
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4. Each SBV’s provincial branch shall:
a) give opinions about the grant of special loans
or extension of special loan term and modifications to Decision to grant
special loan in accordance with this Circular;
b) discharge the responsibilities as prescribed in
Article 33 of this Circular in case of a special loan granted by SBV to a
credit institution that is subject to microprudential supervision of the SBV’s
provincial branch and is not placed under special control;
c) based on the Decision to place a credit
institution under special control, do accounting for converting that credit
institution’s refinancing loan recorded at the SBV’s provincial branch into its
special loan; continue performing responsibilities for this special loan
according to the mechanism for granting the relevant refinancing loan;
d) carry out the conclusion of special loan
agreements, which must be prepared according to the Appendix V enclosed
herewith, disburse loan amounts, grant extension of special loan term, and
collect loan debts in accordance with this Circular, decisions to grant special
loans/extension of special loan term and relevant laws;
dd) play the leading role in carrying out
addition/replacement of assets used as collateral as prescribed in this
Circular; give written notice to the SBV’s Operations Center of completion of
procedures for receipt of collateral which are debt claims/interests receivable
additionally provided by the borrower (in case the borrower replaces the
valuable papers which are used as collateral with debt claims/interests
receivable);
e) notify the borrower in writing of the use of
money from its account for debt collection; implement the provisions of points
a, b, dd, e clause 6, clause 7 Article 15, points a, b, c, e, g clause 5
Article 25 of this Circular;
g) cooperate at the request of Special Control
Boards in implementing provisions of Clauses 1, 2 Article 33 of this Circular;
h) within the first 07 working days of the month
following the month in which outstanding debts occur or changes in the special
loan occur at SBV’s provincial branch, prepare a report thereof according to
Appendix VI enclosed herewith and send it to the SBV Banking Supervision Agency
and the Financial Policy Department;
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k) If a credit institution that is subject to the
microprudential supervision of the SBV's provincial branch is found to have
used the special loan for the purposes other than the approved loan purpose as
notified by a competent authority or the Special Control Board or through
inspection, the SBV's provincial branch shall give written notice of violation
to the borrower, the Special Control Board (if any), the SBV Banking
Supervision Agency and the Financial Policy Department; such notice must
indicate details about the borrower’s failure to use the special loan for
approved purpose;
l) Give a written notice to the SBV’s Operations
Center of full collection of the special loan principal and interest (in case
the list of assets used as collateral for the special loan includes valuable
papers);
m) Perform other responsibilities as prescribed in
this Circular.
5. The Finance and Accounting Department
shall:
provide instructions on accounting tasks relating
to special loans granted by SBV to credit institutions, including conversion of
principal and interest of refinancing loans to those of special loans, and
receipt of collateral for special loans.
Article 35. Transition
1. With regard to a special loan which is granted
by SBV and of which outstanding principal and interest are not yet fully paid
by the effective date of this Circular:
a) The special loan shall continue to be treated
according to the Decision to grant special loan, Decision to grant extension of
special loan term or the special loan agreement signed before the effective
date of this Circular;
b) Before the restructuring plan or mandatory
transfer plan as prescribed in the Law on Credit Institutions 2010 is approved,
extension of special loan term shall comply with provisions of clauses 2, 3 and
4 of this Article;
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2. With regard to a special loan for which the
borrower’s application for extension of special loan term and the Special
Control Board’s proposal for grant of extension of special loan term have been
received by SBV before the effective date of this Circular:
a) SBV shall consider making decision to grant
extension of special loan term on the basis of the received application and
proposal for grant of extension of special loan term;
b) Extension of term of a special loan which is
granted before the effective date of the Law No. 17/2017/QH14 shall comply with
provisions of point b clause 1 and clause 4 Article 27 of the Circular No.
08/2021/TT-NHNN dated July 06, 2021 of the Governor of the State Bank of
Vietnam prescribing grant of special loans to credit institutions placed under
special control, as amended by the Circular No. 02/2022/TT-NHNN dated March 31,
2022 and the Circular No. 13/2022/TT-NHNN dated October 28, 2022 (hereinafter
referred to as “Circular No. 08/2021/TT-NHNN”);
c) Extension of term of a special loan with
collateral which is granted after the effective date of the Law No.
17/2017/QH14 shall comply with provisions of clause 1 Article 11, Article 14,
and Article 18 of the Circular No. 08/2021/TT-NHNN and the SBV’s Plan for
continuation of grant of special loans to borrowers under the Resolution No.
02/NQ-CP dated January 14, 2023 (hereinafter referred to as “Plan for
continuation of grant of special loans”);
d) Extension of term of a special loan without collateral
which is granted after the effective date of the Law No. 17/2017/QH14 shall
comply with provisions of clause 1 Article 11, Article 14, and Article 18 of
the Circular No. 08/2021/TT-NHNN (except provisions on collateral) and the Plan
for continuation of grant of special loans.
3. With regard to a special loan with collateral
which is granted by SBV to a borrower that does not have an approved
restructuring plan or an approved restructuring plan under the Law on Credit
Institutions 2010 and of which outstanding principal and interest are not yet
fully paid by the effective date of this Circular, except the case prescribed
in clause 2 of this Article:
a) SBV shall consider granting extension of special
loan term on the basis of the borrower’s solvency or the plan for settlement of
the existing special loan included in the restructuring plan or the
restructuring plan under the Law on Credit Institutions 2010 submitted to a
competent authority, and in conformity with the Plan for continuation of grant of
special loans (if any). Each extension shall be less than 12 months. Extension
of special loan term shall be granted according to provisions of Articles 12,
13, 14, 15 and 19 of this Circular, except provisions on measures for dealing
with the bank run and provisions of point b of this clause;
b) In case the borrower’s restructuring plan under
the Law on Credit Institutions 2010 has been submitted to a competent authority
before the effective date of this Circular, TL shall be 100%, the List of
assets used as collateral shall comply with Appendix VII enclosed herewith, and
provisions on order of priority of assets used as collateral in clauses 1 and 2
Article 13 hereof shall not apply;
c) In case a transferee under mandatory transfer
plan as prescribed in the Law on Credit Institutions is not available, the
repayment of the special loan debt shall comply with provisions of clause 7
Article 5 and Article 15 of this Circular;
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4. With regard to a special loan without collateral
which is granted by SBV to a borrower that does not have an approved
restructuring plan and of which outstanding principal and interest are not yet
fully paid by the effective date of this Circular, except the case prescribed
in clause 2 of this Article, SBV shall consider granting extension of special
loan term on the basis of the borrower’s solvency or the plan for settlement of
the existing special loan included in the restructuring plan submitted to a
competent authority and in conformity with the Plan for continuation of grant
of special loans. Extension period and interest rate shall comply with clause 2
Article 11 and Article 12 of this Circular. Procedures for SBV's grant of
extension of special loan term:
a) When the borrower wishes to apply for extension
of term of the special loan without collateral, it shall submit 03 packages of
the application for SBV’s grant of extension of special loan term to the
Special Control Board at least 40 working days before the special loan becomes
due.
b) Such an application includes an application form
for extension of special loan term (which clearly indicates the name of the
credit institution, number of VND account opened at a SBV’s provincial branch,
reasons, the amount requiring extension, term, interest rate, whether the
borrower has an approved restructuring plan, and commitments to comply with
regulations of law on grant of special loans) and the documents prescribed in
points b, c, dd clause 1 Article 19 of this Circular, except contents about
measures for dealing with the bank run;
c) Procedures for considering and making decision
to grant extension of special loan term shall comply with provisions of clauses
2, 4, 5, 7 and 8 Article 19 of this Circular (except provisions on collateral).
5. With regard to a special loan which is granted
by SBV to a borrower that does not have an approved restructuring plan and of
which only outstanding interest is not yet fully paid by the effective date of
this Circular, the special loan debt shall be collected according to the
Special Control Board’s proposal and SBV’s request and guidelines (if any).
Article 36. Effect
1. This Circular comes into force from July 01,
2024.
2. The documents listed hereunder shall cease to
have effect from the effective date of this Circular:
a) The Circular No. 08/2021/TT-NHNN dated July 06,
2021 of the Governor of the State Bank of Vietnam prescribing grant of special
loans to credit institutions placed under special control, except provisions of
clause 2 Article 35 of this Circular;
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c) The Circular No. 13/2022/TT-NHNN dated October
28, 2022 of the Governor of the State Bank of Vietnam providing amendments to
the Circular No. 08/2021/TT-NHNN dated July 06, 2021 of the Governor of State
Bank of Vietnam prescribing grant of special loans to credit institutions
placed under special control, except provisions of clause 2 Article 35 of this
Circular;
d) The Circular No. 01/2023/TT-NHNN dated January 19,
2023 of the Governor of the State Bank of Vietnam prescribed grant of special
loans without collateral to credit institutions placed under special control in
urgent cases.
3. The Chief of Office, the Director of the
Financial Policy Department, heads of SBV’s affiliated units, Special Control
Boards of credit institutions placed under special control, and credit
institutions are responsible for the implementation of this Circular./.
PP.
GOVERNOR
DEPUTY GOVERNOR
Pham Thanh Ha