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THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
171/2002/QD-NHNN
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Hanoi, March 08, 2002
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DECISION
PROMULGATING THE REGULATION ON SETTING UP,
MANAGEMENT AND USE OF THE RISK RESERVE OF THE STATE BANK
THE STATE BANK GOVERNOR
Pursuant to Vietnam State Bank Law
No.01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No.15/CP of March 2, 1993 stipulating the
tasks, powers and State management responsibilities of the ministries and ministerial-level
agencies;
Pursuant to the Government’s Decree No.100/1998/ND-CP of December 10, 1998 on
the financial regime of the State Bank;
At the proposal of the director of the Accountancy and Finance Department,
DECIDES:
Article 1.- To promulgate together with this Decision the
Regulation on setting up, management and use of the risk reserve of the State
Bank.
Article 2.- This Decision takes effect 15 days after its
signing.
Article 3.- The director of the Office, the director of the
Accountancy and Finance Department, the heads of the units attached to the
State Bank, the directors of the State Bank branches in the provinces and
centrally-run cities shall have to implement this Decision.
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STATE BANK GOVERNOR
Le Duc Thuy
REGULATION
ON SETTING UP, MANAGEMENT AND USE OF THE RISK
RESERVE OF THE STATE BANK
(Promulgated together with the State Bank Governor’s Decision
No.171/2002/QD-NHNN of March 8, 2002)
I.
GENERAL PROVISIONS
Article 1.- This Regulation prescribes the setting up,
management and use of the risk reserve of the State Bank to offset losses due
to objective causes in credit, payment service and treasure activities of the
State Bank and loss difference amounts after compensations therefor are made by
collectives or individuals in strict compliance with the provisions of law.
Debt amounts in freezing or rescheduling periods
under the Prime Minister’s decisions shall not be subject to the handling with
this risk reserve.
Article 2.- Annually, the State Bank shall set up and
account into its expenditure a risk reserve equal to 10% of the total income
minus various expenses, excluding the risk reserve expense.
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Article 4.- The State Bank’s risk reserve, if not used up in
a year, shall be carried forward to the following year for further use.
In cases where the risk reserve is not enough to
offset losses according to the provisions of this Regulation, the State Bank
and the Ministry of Finance shall jointly submit to the Prime Minister for
handling the deficit.
Article 5.- The competence for handling losses with the risk
reserve:
The State Bank Governor shall decide on the
handling of losses of the State Bank.
Article 6.- The principle of loss handling with the risk
reserve:
1. The State Bank Governor shall consider and
handle losses with enough lawful evidences at the handling time.
2. For losses handled with the State Bank’s risk
reserve, units that let such losses occur must devise measures for continued
recovery thereof as for ordinary collectible amounts, which are not yet handled
with the risk reserve, except for debts written off for credit institutions
under the Prime Minister’s decisions.
3. All money amounts recovered from losses,
which have already been handled with the risk reserve, must be remitted to the
State Bank (the Accountancy and Finance Department) for being accounted into
the State Bank’s income.
II.
SPECIFIC PROVISIONS
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Article 8.- The risk reserve shall be used to offset losses
in the following cases:
1. Losses incurred before the State Bank Law
took effect, including:
- Debts written off for enterprises which have
borrowed loans from the State Bank, and already been dissolved, bankrupt or
insolvent.
- Foreign loans repaid under guarantees or
re-guarantees on behalf of the borrowing credit institutions and enterprises,
which have been dissolved, bankrupt or insolvent.
- Collectible amounts from clients
(organizations and individuals) which have been embezzled, appropriated and
cannot be recovered as shown by evidences.
2. Debt amounts written off under the Prime
Minister’s decisions without source from the Government as compensations to the
State Bank.
3. Debts written off for credit institutions
which have borrowed loans from the State Bank and have already been bankrupt,
dissolved or insolvent.
4. Losses incurred due to objective causes in
performance of the payment operation.
5. Losses due to objective reasons in the
management of foreign exchange reserve fund, gold reserve, foreign-currency
deposits at foreign banks due to such force
majeure circumstances as:
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6. Losses due to the following objective causes
in the cash check and treasure operation:
- Transportation of special goods which
encounters en-route incidents such as natural disasters or enemy sabotage.
- Money store is sabotaged or hit by natural
disasters.
7. Other irrecoverable losses, such as: amounts
to be compensated by individuals and organizations under conclusions of the
legal agencies or the State Bank Governor, but unlikely to be fully recovered
even after the compensations are made by such individuals and organizations.
8. Other cases under the State Bank Governor’s
decisions.
Article 9.- The Loss Handling Council of the State Bank
shall be composed of the following persons:
- One Deputy Governor of the State Bank - the
Council Chairman
The Council’s members:
- The director of the Accountancy and Finance
Department - standing member;
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- The director of the General Control
Department;
- The chief inspector of the State Bank;
- The director of the Department for Issuance
and Treasure Operations;
- The director of the Legal Department;
- The director of the Department for
Organization, Personnel and Training;
- The heads of the units where losses are
incurred.
Article 10.- Tasks of the Loss Handling Council
Right after the occurrence of losses which need
to be handled with the risk reserve, on the basis of reports and proposals of
the heads of the units where such losses are incurred, the Loss Handling
Council shall devise a plan for analyzing and assessing debts and losses.
- It shall submit cases involving debts left
unsettled for a long time as specified in Clauses 1, 2 and 3, Article 8 of this
Regulation to the Governor for consideration before sending them to the
Ministry of Finance for the latter’s opinions and submitting to the Prime
Minister;
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- It shall inspect the handling of losses after
handling decisions are issued by the competent authorities.
Article 11.- Legal dossiers to serve as basis for the loss
handling
Legal dossiers to serve as basis for the loss
handling at the State Bank must ensure their legality and consist of:
1. Dossiers for cases specified in Clauses 1, 2
and 3, Article 8 of this Regulation must consist of:
- The Prime Minister’s decision on debt
write-off for each specific debt and debtor;
- Copies of documents on handling of debts and
plan for division of assets of bankrupt or dissolved credit institutions;
- Copies of the bankruptcy-declaration or dissolution
decision of the competent authority according to the provisions of law;
- Summary of written-off debts, enclosed with
dossiers thereof and the competent functional agency’s certification of
objective causes for failure to repay debts;
- Written report and record of the Loss Handling
Council.
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- Report and proposal(s) of the unit where
losses are incurred;
- Dossiers and documents related to the losses
due to objective causes;
- The competent authority’s decision claiming
compensation liabilities to individuals and/or collectives, enclosed with the
list of such individuals and/or collectives and compensation amount to be made
by each of them;
- Written report and record of the Loss Handling
Council.
Article 12.- Loss handling order
All loss-handling cases shall be carried out at
the State Bank (the headquarters) according to the following order:
- The heads of the units where losses are
incurred shall coordinate with the Trade Union organizations’ chairmen and
direct their attached sections such as: heads of accountancy and settlement
sections, chief controller or controllers (where there is no chief controller),
heads of administrative organization sections, heads of sections or sections
where losses are incurred, to explain, examine, clarify and make written
records on reported losses together with their dossiers, and propose the
Council to handle losses.
- The Loss Handling Council shall consider, make
proposals and submit the cases to the Governor for decision.
III.
ORGANIZATION OF IMPLEMENTATION
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Article 14.- The accounting of the loss handling shall be
carried out under guidance of the director of the Accountancy and Finance
Department and the risk reserve shall be used to handle losses under decisions
of the State Bank Governor.
Article 15.- The amendments and supplements to the
provisions of this Regulation shall be decided by the State Bank Governor.
STATE BANK GOVERNOR
Le Duc Thuy