How much is the refinancing amount for credit institutions in Vietnam on the basis of special bonds?

How much is the refinancing amount for credit institutions in Vietnam on the basis of special bonds? Question of Thien Kim (Son La, Vietnam)

How much is the refinancing amount for credit institutions in Vietnam on the basis of special bonds?

Pursuant to Article 6 of Circular 15/2022/TT-NHNN stipulating as follows:

Amount of refinancing
1. The refinancing amount is calculated according to the formula specified in Clause 2 of this Article but must not exceed the amount requested by the credit institution for the refinancing loan.
2. Formula to calculate refinance amount:
In there:
ST is the refinance amount.
TL is the refinancing rate determined according to the provisions in Appendix 01 issued with this Circular.
MG is the total par value of special bonds in the List of special bonds as the basis for refinancing.
DPRR is the total provision for risks made for special bonds in the List of special bonds as the basis for refinancing.
TN is the total amount of debt recovery in the List of special bonds as the basis for refinancing.

According to the above regulations, the refinancing amount for credit institutions on the basis of special bonds will be determined based on the refinancing rate, total par value of special bonds, total risk provisions and the total amount of debt recovery.

How much is the refinancing amount for credit institutions in Vietnam on the basis of special bonds?

What are the refinancing conditions for credit institutions in Vietnam on the basis of special bonds?

Pursuant to Article 5 of Circular 15/2022/TT-NHNN stipulating as follows:

Conditions for refinancing
The State Bank of Vietnam shall consider and decide to refinance credit institutions that fully satisfy the following conditions:
1. Credit institutions are not under special control or are handled for violations as prescribed in Article 15 of this Circular.
2. The credit institution has made provision for all special bonds it owns according to the provisions of law or the written approval of the competent authority within 12 months preceding the date of the organization. credit with an application letter for refinancing loan.
3. Credit institutions comply with prudential ratios as prescribed in Clause 1, Article 130 of the Law on Credit Institutions (amended and supplemented) and the State Bank's regulations within 12 months immediately before the date the credit institution has a written request for loan refinancing.
4. Special bonds used as a basis for refinancing fully satisfy the conditions specified in Article 4 of this Circular.

Accordingly, in the coming time, in order to be refinanced, credit institutions that own special bonds of asset management companies must satisfy the following conditions:

- Not during the period of special control or being handled for violations

- Provision has been made for all special bonds currently owned in accordance with the provisions of law or the written approval of the competent authority within 12 consecutive months prior to the date the credit institution has the Certificate of Proposal of loan refinancing.

- Comply with safety ratios within 12 consecutive months prior to the date the credit institution has the Request for Refinancing Loan.

- Special bonds as the basis for refinancing fully satisfy the conditions as prescribed by law.

What are the conditions for the extension of refinancing for credit institutions in Vietnam on the basis of special bonds?

Pursuant to Article 7 of Circular 15/2022/TT-NHNN stipulating as follows:

Conditions for extension of refinancing
The State Bank in Vietnam shall consider and decide to extend the refinancing period for credit institutions that fully satisfy the following conditions:
1. Credit institutions are not under special control or are handled for violations as prescribed in Article 15 of this Circular.
2. The credit institution has made provision for all special bonds it owns according to the provisions of law or the written approval of the competent authority within 12 months preceding the date of the credit institutions with a written request for loan extension for refinancing.
3. Credit institutions have difficulties in their ability to pay.
4. Special bonds used as the basis for extension of refinancing fully satisfy the conditions specified in Article 4 of this Circular.
5. The total par value of special bonds used as a basis for refinancing extension must ensure:
In there:
MG is the total par value of special bonds in the List of special bonds as the basis for refinancing extension.
ST is the amount the credit institution proposes to extend the refinancing loan.
TL is the rate of refinancing extension determined according to the provisions in Appendix 01 issued with this Circular.
DPRR is the total provision made for special bonds in the special bond chart as the basis for extending refinancing.
TN is the total amount of debt recovery in the Special Bond List as the basis for extending the refinancing.

Accordingly, in order to be extended refinancing on the basis of special bonds, a credit institution must satisfy the following conditions:

- Not during the period of special control or being handled for violations;

- Provision has been made for all special bonds currently owned in accordance with the provisions of law or the written approval of the competent authority within 12 consecutive months prior to the date the credit institution has the Certificate of Proposal issued by the credit institution. proposal to extend loan refinancing;

- Difficulty in ability to pay;

- Special bonds used as a basis for refinancing extension fully satisfy the prescribed conditions

- The total par value of special bonds must be greater than or equal to the total amount requested for extension of refinancing with the total provision for risks and the total amount of debt recovery.

Circular 15/2022/TT-NHNN will take effect from January 17, 2023.

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