THE STATE BANK OF VIETNAM
Circular No. 20/2014/TT-NHNN dated August 12, 2014 of the State Bank of Vietnam on receipts and advances from Vietnam Asset Management Company for the bad debts bought by special bonds
Pursuant to the Law on the State bank of Vietnam no. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on credit institutions no. 47/2010/QH12 dated June 16, 2010;
Pursuant to the Government's Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam;
Pursuant to the Decree no. 53/2013/ND-CP dated May 18, 2013 of the Government defining the establishment, organization and operation of Vietnam Asset Management Company;
Follow the instruction of the Prime Minister given in the Official Dispatch no. 1760/TTg-KTTH dated October 31, 2013 and the Official Dispatch no. 3831/VPCP-KTTH dated May 27, 2014;
At the request of the Chief Inspector of the banking supervisory agency;
The Governor of the State bank of Vietnam promulgates the Circular receipts and advances received by Vietnam Asset Management Company when buying bad debts with special bonds.
Article 1. Scope and subjects of applications
1. This Circular provides for receipts and advances received by Vietnam Asset Management Company (VAMC) when buying bad debts with special bonds, including:
a) The receipts in proportion to the recovered amount of bad debts bought with special bonds (hereinafter referred to as receipts from debt collection)
b) The annual advances in proportion to the actual annual average outstanding principal of bad debts bought with special bonds (hereinafter referred to as advances)
2. The regulated entities include:
a) Vietnam Asset Management Company (VAMC)
b) Vietnamese credit institutions that sell bad debts to VAMC for special bonds (hereinafter referred to as debt-selling credit institutions);
c) Other relevant entities
Article 2. Rules for advance determination and repayment
1. The actual annual average outstanding principal of a bad debt bought with special bonds prescribed in Point b Clause 1 this Circular shall be determined according to the multiplication method applied to the outstanding principal of VAMC, which is an on-balance item.
