What are the procedures for requesting approval of special bond issuance plan in Vietnam?
- What are the contents of the special bond issuance plan in Vietnam?
- What is the application for approval of special bond issuance plan in Vietnam?
- What are the procedures for requesting approval of special bond issuance plan in Vietnam?
- What are the rights and obligations of credit institutions holding bonds/special bonds?
What are the contents of the special bond issuance plan in Vietnam?
Pursuant to Clause 2, Article 12 of Circular No. 19/2013/TT-NHNN stipulating as follows:
Special bond issuance plan
1. The Special bond issuance plan is a compilation of analyses, assessments, and suggestions pertaining to the issuance of special bonds of Vietnam Asset Management Company.
2. The Special bond issuance plan shall specify:
a) The estimated volume, value of bad debts being bought and the debt-selling credit institutions;
b) Estimated demand and roadmap for issuing special bonds;
c) Suggested structuring of special bond period;
d) Assessment of Vietnam Asset Management Company’s capacity for buying, managing and settling bad debts;
dd) Other information requested by the State bank.
Thus, the Special bond issuance plan is a compilation of analyses, assessments, and suggestions pertaining to the issuance of special bonds of Vietnam Asset Management Company.
The Special bond issuance plan shall specify:
- The estimated volume, value of bad debts being bought and the debt-selling credit institutions;
- Estimated demand and roadmap for issuing special bonds;
- Suggested structuring of special bond period;
- Assessment of Vietnam Asset Management Company’s capacity for buying, managing and settling bad debts;
- Other information requested by the State bank.
What are the procedures for requesting approval of special bond issuance plan in Vietnam?
What is the application for approval of special bond issuance plan in Vietnam?
According to the provisions of Clause 1, Article 13 of Circular No. 19/2013/TT-NHNN, the application for approval of the special bond issuance plan includes:
- A written request for the approval for the Special bond issuance plan signed by the legal representative of Vietnam Asset Management Company;
- The resolution of the Member assembly of Vietnam Asset Management Company on passing the Special bond issuance plan enclosed with the Special bond issuance plan specified in Article 12 of Circular No. 19/2013/TT-NHNN.
What are the procedures for requesting approval of special bond issuance plan in Vietnam?
Pursuant to Article 13 of Circular No. 19/2013/TT-NHNN stipulating that the procedures for requesting approval of the special bond issuance plan are as follows:
(1) The Vietnam Asset Management Company shall make an application for the approval for the Special bond issuance plan and send it to the State bank (Bank Supervision and Inspection Agency) directly or by post.
(2) Before December 15, Vietnam Asset Management Company shall make the application specified in (1) to request the State bank to approve the Special bond issuance plan of the next year, except for the case in (3).
(3) The time to make the application for approval of the Special bond issuance plan in 2013 of Vietnam Asset Management Company shall be decided by the Member assembly of Vietnam Asset Management Company.
(4) Within 15 working days from the day on which the valid application for approval of Special bond issuance plan, the State bank shall send Vietnam Asset Management Company a written response as to approving or not approving the Special bond issuance plan. If the plan is not approved, explanation must be provided in the written response sent to Vietnam Asset Management Company.
(5) Based on the Special bond issuance plan approved by the State bank, the capacity of Vietnam Asset Management Company, and the demand for settling bad debts of credit institutions, Vietnam Asset Management Company shall decide the issuance of special bonds to buy bad debts of credit institutions.
(6) Based on the monetary policy targets, the requirements for restructuring credit institutions, and the target of settling bad debts in each period, the State bank shall consider amending, superseding, or annulling the approved Special bond issuance plan where necessary.
What are the rights and obligations of credit institutions holding bonds/special bonds?
According to the provisions of Clause 2, Article 15 of Circular No. 19/2013/TT-NHNN (amended by Clause 11 Article 1 of Circular No. 14/2015/TT-NHNN) on the rights and obligations of credit institutions holding bonds/special bonds as follows:
- Perform the rights and duties pertaining to bonds and special bonds;
- Transfer and bonds/special bonds with Vietnam Asset Management Company for redemption as prescribed by law;
- Set the risk factor of bonds to 0% and that of special bonds to 20% when calculating their capital adequacy ratio;
- Use special bonds to repurchase the bad debts sold to Vietnam Asset Management Company as prescribed by this Circular;
- Use bonds and special bonds for refinancing at the State bank as prescribed by the State bank; use bonds to participate in open market operation.
- Do not transfer bonds to other entities except for the case in Clause 2 Article 11 of this Circular.
LawNet
