THE STATE BANK OF VIETNAM

Circular No. 19/2013/TT-NHNN of September 6, 2013, providing the purchase, sale and handling of non-performing loans by the Asset Management Company of Vietnamese credit institutions

Pursuant to June 16, 2010 Law No. 46/2010/QH10 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to November 29, 2005 Law No. 60/2005/QH11 on Enterprises;

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 53/2013/ND-Cp of May 18, 2013, on the establishment, organization and operation of the Asset Management Company of Vietnamese credit institutions

At the proposal of the Chief of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam promulgates the Circular providing the purchase, sale and handling of non-performing loans by the Asset Management Company of Vietnamese credit institutions.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the purchase, sale and handling of non-performing loans by the Asset Management Company of Vietnamese credit institutions (below referred to as Vietnam Asset Management Company); and the issuance, management and payment of special bonds.

Article 2. Subjects of application

1. Vietnam Asset Management Company.

2. Vietnamese credit institutions (below referred to as credit institutions).

3. Borrowers.

4. Guarantors.

5. Other organizations and individuals involved in the purchase, sale and handling of non-performing loans by Vietnam Asset Management Company; or the issuance, management and payment of special bonds.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Loan-selling credit institution means a credit institution that sells a non-performing loan to Vietnam Asset Management Company.

2. Loan restructuring means the loan rescheduling; loan extension; exemption from or reduction of overdue fine interests, charges and loan interests; or adjustment of interest rates of non-performing loans.

3. Loan rescheduling means the acceptance to change the repayment period of principal and interest within the repayment term agreed in the credit contract, entrustment contract or corporate bond purchase contract without changing the loan repayment deadline.

4. Loan extension means the acceptance to extend the repayment of principal and interest beyond the loan repayment deadline agreed in the credit contract, entrustment contract or corporate bond purchase contract.

5. Authorized credit institution means a loan-selling credit institution that is authorized by Vietnam Asset Management Company to conduct one or some of the operations of Vietnam Asset Management Company.

6. Book value of the outstanding principal of a non-performing loan at a credit institution is the outstanding principal of the non-performing loan accounted on the balance sheet of such credit institution. The book value of the outstanding principal of a non-performing loan at Vietnam Asset Management Company is the purchase price or the outstanding principal of the non-performing loan accounted on the balance sheet of Vietnam Asset Management Company.

7. Loan means an outstanding loan under a credit extension contract or agreement, an entrustment contract or a corporate bond contract of a credit institution.

8. Special bond means a fixed-term valuable paper issued by Vietnam Asset Management Company to purchase non-performing loans of credit institutions.

9. Date of issuance of special bonds means the date when special bonds become effective which serves as a basis for determining the date of payment of bonds.

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