THE PRIME MINISTER

Decision No.  843/QD-TTg dated May 31, 2013 of the Prime Minister approving the Scheme “Handling bad debts of credit institution system” and the Scheme “Establishing Vietnam Asset Management Company for credit institutions”
Pursuant to the December 25, 2001 Law on Government organization;
Pursuant to the June 16, 2010 Law on the State bank of Vietnam;
Pursuant to the June 16, 2010 Law on credit institutions;
Pursuant to the Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on establishment, organization and operation of Vietnam Asset Management Company for credit institutions;
Pursuant to Notice and conclusion of the Political Bureau No. 121-TB/TW dated February 20, 2013 on Scheme on handling bad debts of credit institutions system;
Pursuant to the Government’s Resolution No. 02/NQ-CP dated January 07, 2013 on a number of solutions to remove difficulties for business production, market support, solving of bad debts; 
At the proposal of The Governor of the State bank of Vietnam,
DECIDES:

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Article 1. To approve for the enclosed- this Decision Scheme on “Handling bad debts of credit institutions system" and scheme on “Establishing Vietnam Asset Management Company for credit institutions” (hereinafter called Scheme).
Article 2. Implementation organization
1. Responsibility of the State bank of Vietnam (hereinafter referred to as the State bank):
a. Assuming the prime responsibility for, and coordinating with relevant Ministries, agencies and People’s Committees of central-affiliated cities and provinces in carrying out solutions to reach target of handling bad debts of the credit institutions system.
b. Promulgating Decision on establishment of Vietnam Asset Management Company for credit institutions, approving its Charter.
c. Assuming the prime responsibility for, and coordinating with the Ministry of Finance and relevant other Ministries and agencies in elaborating and submitting to the Prime Minister in 2013 for approval of plan on handling bad debts of Vietnam Bank for Social Policies.
d. Directing, urging, inspecting, supervising and examining credit institutions and Vietnam Asset Management Company for credit institutions in compliance of provisions of law on handling of bad debts and objectives, solutions mentioned in Schemes.
dd. Assuming the prime responsibility for, and coordinating with the Ministry of Information and Communications, relevant agencies, organizations, People’s Committees of  central-affiliated cities and provinces, information and media agencies in popularizing, propagating so as to create the support and uniformity of society, people on roles, signification, objectives, policies and solutions handling bad debts of credit institutions system.
e. For credit institutions deliberately hide bad debts, fail to strictly implement the handling solutions already approved by the Prime Minister and directions of the State bank in the course of handling of bad debts, the State bank may perform one of or several following measures:
- Conducting all-sided inspections and/or require for compulsory audit according contents as requested by the State bank;

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- Restraining the expansion of operational scope, scale and area; limiting, terminating, temporarily suspending one or several banking activities; limiting division of dividend and transfer of shares or assets;
- Applying one or several safety rate higher than the set level;
- Requiring the increase of charter capital for meeting requirements on ensuring safety for banking activities;
- Deciding the limit of credit growth for credit institutions in necessary cases to ensure safety for credit institutions and their systems;
- Applying some measures, management sanctions, supervision if necessary; 
- Other measures as prescribed by law.
g. Acting as focal agency to coordinate with relevant Ministries and agencies in advising, assisting the Government to regularly monitor, conduct preliminary and final reviews and learn experiences in implementation of Schemes, timely report to the Political Bureau to provide directions for handling of difficulties, problems arising beyond competence of the Government.
h. Implementing tasks, solutions under the state management responsibility assigned at Schemes enclosed with this Decision.

 

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