On September 16, 2014, the State Bank of Vietnam issued the Circular No. 26/2014/TT-NHNN 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.
The subjects of application are the 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.
Accordingly, 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 with the Refinancing rate is 0%/year.
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.
Three years after the disbursement of refinancing loan, credit institutions must refund the refinancing loan to the State Bank. Credit institutions shall pay the refinancing loans to the State Bank before deadline in the cases that customers already paid to credit institutions in the frozen time. Within the first 10 working days of the month, credit institutions shall pay for refinancing loans to the State Bank an amount equivalent to the amount that customers already paid for credit institutions in the previous month and others cases that need to collect refinancing loans.
This Circular takes effect on November 11, 2014.
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