The Circular No. 18/2015/TT-NHNN dated October 22, 2015 of the State Bank of Vietnam regulating on refinancing loans on the basis of special bonds of Asset Management Company for Vietnamese Credit Institutions (VAMC) with a view to supporting the operating capital of credit institutions in the process of handling bad debts.
Accordingly, credit institutions having legal ownership of special bonds that are deposited at the State Bank and are not paid by Asset Management Company of credit institutions and setting up risk provision levels for special bonds as stipulated according to the Decree No. 53/2013/ND-CP, Decree No. 34/2015/ND-CP shall be refinanced with the total value of special bonds, 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. For credit institutions that are performing restructuring plan that has been approved, the refinancing level shall be decided by the State Bank Governor on each specific case but it shall not exceed 100% of the value of special bonds.
In the case, refinancing loan is due, credit institution fails to pay debt and not being permitted extending by the State Bank, the State Bank shall transfer the debt of credit institutions into the overdue debt and apply the overdue refinancing interest rate since the excessive date with the rate that overdue refinancing interest rate is equal to 150% of refinancing interest rate quoted in the credit contract between the State Bank and credit institution or the State Bank of Vietnam shall conduct measures to collect debts as to extract the deposit account of credit institutions at the State Bank; request Asset Management Company to use the collecting money that credit institution is enjoyed from bad debt bought by special bonds; collect debts from other sources of credit institutions; request credit institution to transfer the ownership of valuable papers that are under the ownership of credit institution for the State Bank….
This Circular takes effect on December 10, 2015 and replaces the Circular No. 20/2013/TT-NHNN dated September 09, 2013.
Source: luatvietnam.vn
