THE STATE BANK OF VIETNAM
Circular No. 26/2014/TT-NHNN dated September 16, 2014 of the State Bank of Vietnam regulating on refinancing for credit institutions in Vietnam dong according to the Decision No. 540/QD-TTg dated April 16, 2014 of the Prime Minister on the credit policy via shrimp and catfish rearing
Pursuant to the Law on Vietnam State Bank 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 Decision No. 156/2013/ND-CP dated November 11, 2013 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Decision No. 540/QD-TTg dated April 16, 2014 of the Prime Minister on the credit policy vis-à-vis shrimp and catfish rearing;
At the proposal of the Director of Monetary Policy Department;
The State Bank Governor promulgates the Circular regulating on refinancing for credit institutions in Vietnam dong according to the Decision No. 540/QD-TTg dated April 16, 2014 of the Prime Minister on the credit policy vis-à-vis shrimp and catfish rearing
Article 1. Scope of application and subject of application
1. Scope of application:
This Circular promulgates on refinancing in Vietnam dong of the Vietnam State Bank (hereinafter referred to as the State Bank) to credit institutions according to the Decision No. 540/QD-TTg dated April 16, 2014 of the Prime Minister on the credit policy vis-à-vis shrimp and catfish rearing (hereinafter referred to as the Decision No. 540/QD-TTg).
2. Subject of application:
Credit institutions that are implementing to freeze debts according to the Decision No. 540/QD-TTg to households, farm owners and cooperatives engaged in shrimp and catfish rearing in face of difficulties in production and loan repayment to credit institutions before December 31, 2013 (hereinafter referred to as borrowers).
Article 2. Refinancing rate
Refinancing rate of the State Bank for credit institutions is equivalent to the amount of money that credit institutions have frozen for borrowers as stipulated under the Decision No. 540/QD-TTg.
Article 3. Time for refinancing and extension of refinancing
The refinancing tenor is 364 days and it is automatically extended for remaining outstanding loans at the due time. Time of extension for each time is equal to the time for the first time refinancing. For the last refinancing, it must be ensured that the total number of time for refinancing and time for refinancing extension is 3 years since the disbursement of refinancing loan.
Article 4. Interest rate for refinancing
1. Refinancing rate in the time of refinancing, refinancing extension as stipulated under Article 3 of this Circular is 0%/year.
2. Overdue refinance rate is equal to 150% of the refinance rate announced by the State Bank at the time of transferring the overdue debt for refinancing loans.
