THE STATE BANK OF VIETNAM
Circular No. 20/2013/TT-NHNN dated September 09, 2013 of the State Bank of Vietnam regulating on refinancing loans on the basis of special bonds of Asset Management Company for Vietnamese Credit Institutions
Pursuant to the Law No. 46/2010/QH12 dated June 16, 2010 of the National Assembly on the State Bank of Vietnam;
Pursuant to the Law No. 47/2010/QH12 dated June 16, 2010 of the National Assembly on Credit Institutions;
Pursuant to the Decree No. 96/2008/ND-CP dated August 26, 2008 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Decision No. 53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Vietnam Asset Management Company;
At the proposal of the Director of the Monetary Policy Department;
The Governor of the Vietnam State Bank promulgates the Circular regulating on refinancing loans on the basis of special bonds of Asset Management Company for Vietnamese Credit Institutions.
Chapter 1
GENERAL PROVISIONS
Article 1. Scope of regulation
This Circular regulates on refinancing loans in Vietnamese dong of the Vietnam State Bank for credit institutions on the basis of special bonds of Asset Management Company for Vietnamese Credit Institutions (hereinafter referred as special bonds) according to the Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Asset Management Company for Vietnamese Credit Institutions (hereinafter referred as the Decree No. 53/2013/ND-CP).
Article 2. Subject of application
1. Credit institutions that are established and operated as stipulated under the Law on credit institutions, except for credit institutions with 100% foreign capital, joint-venture credit institutions (hereinafter referred as credit institutions).
2. Organizations, individuals related to the refinancing loans on the basis of special bonds (hereinafter referred as refinancing) of the State Bank for credit institutions.
Chapter II
SPECIFIC REGULATIONS
Article 3. Purpose
The State Bank provides refinancing for credit institutions with a view to supporting the operating capital of credit institutions in the process of handling bad debts according to the Decree No. 53/2013/ND-CP.
Article 4. Conditions for refinancing
The State Bank shall consider and decide refinancing when credit institutions meet the following conditions:
1. Being credit institutions as stipulated under Clause 1 Article 2 of this Circular, and not being under the special control.
2. Having legal ownership of special bonds unpaid by Asset Management Company for Vietnamese Credit Institutions (hereinafter referred as Asset Management Company).
3. Setting up risk provision levels for special bonds as stipulated according to the Decree No. 53/2013/ND-CP of the Government and guidelines of the State Bank.
Article 5. Refinancing level
Refinancing level for credit institutions on the basis of special bonds is decided by the State Bank Governor and it is based on the objectives of monetary policy, results of risk provision for special bonds and results of handling bad debts but it shall not exceed 70% of the value of special bonds.
Article 6. Refinancing interest rate
1. Refinancing interest rate for credit institutions shall be decided the Prime Minister in each period.
2. Overdue refinancing interest rate is equal to 150% of refinancing interest rate quoted in the credit contract between the State Bank and credit institution.
