What are the details of Circular 37/2024/TT-NHNN on special loans in Vietnam applicable from July 1, 2024?
What are the details of Circular 37/2024/TT-NHNN on special loans in Vietnam applicable from July 1, 2024?
On June 30, 2024, the Governor of the State Bank of Vietnam issued Circular 37/2024/TT-NHNN regulating special loans in Vietnam.
Circular 37/2024/TT-NHNN stipulates the special loans provided by the State Bank of Vietnam (hereinafter referred to as the State Bank) and other credit institutions to credit institutions.
Circular 37/2024/TT-NHNN does not apply to:
- The special loans provided by the Vietnam Deposit Insurance to credit institutions and the special loans provided by the State Bank to the Vietnam Deposit Insurance.
- The special loans provided by the State Bank with an interest rate of 0%/year, unsecured special loans stipulated in Clause 4 Article 193 of the Law on Credit Institutions No. 32/2024/QH15 (hereinafter referred to as the Law on Credit Institutions).
Circular 37/2024/TT-NHNN applies to the following subjects:
- Credit institutions.
- Other organizations and individuals related to the special loans provided by the State Bank, other credit institutions to credit institutions.
What are the details of Circular 37/2024/TT-NHNN on special loans in Vietnam applicable from July 1, 2024? (Internet image)
What are cases of special loans under the current regulations in Vietnam?
Article 4 of Circular 37/2024/TT-NHNN stipulates the cases of special loans in Vietnam as follows:
(1) The State Bank provides special loans from the funds obtained from the central bank function of issuing money in the following cases:
- Special loans to credit institutions facing massive withdrawals including commercial banks, cooperative banks, people’s credit funds, microfinance institutions to pay deposits to depositors;
- Special loans to credit institutions under special control including commercial banks, cooperative banks, financial companies, microfinance institutions to implement approved recovery plans;
- Special loans to commercial banks under special control to implement mandatory transfer plans approved under the Law on Credit Institutions 2024;
- Special loans to commercial banks under special control to support recovery according to mandatory transfer plans under the Law on Credit Institutions 2010 that have been approved.
(2) The Vietnam Cooperative Bank provides special loans in the following cases:
- Special loans to people’s credit funds facing massive withdrawals to pay deposits to depositors;
- Special loans to people’s credit funds under special control to implement approved recovery plans.
(3) Other credit institutions (excluding the Vietnam Cooperative Bank) provide special loans in the following cases:
- Special loans to credit institutions facing massive withdrawals including commercial banks, cooperative banks, people’s credit funds, microfinance institutions to pay deposits to depositors;
- Special loans to credit institutions under special control including commercial banks, cooperative banks, financial companies, microfinance institutions to implement approved recovery plans;
- Special loans to commercial banks under special control to implement mandatory transfer plans approved under the Law on Credit Institutions 2024.
What are the current special loan interest rates in Vietnam?
Article 12 of Circular 37/2024/TT-NHNN stipulates the current special loan interest rates in Vietnam as follows:
Interest Rates
1. The special loan interest rate, the extension of the special loan interest rate is equal to the refinancing rate of the State Bank applicable to the lending form secured by pledging valuable papers (hereinafter referred to as the State Bank’s pledged loan interest rate) on the disbursement date of the special loan, the starting date of the extension of the special loan.
2. The interest rate for overdue principal of special loans is 130% of the nearest special loan interest rate within the permitted period of that special loan.
3. No interest rate applies to overdue interest.
According to the above provisions, the special loan interest rate is calculated as follows:
- The special loan interest rate, the extension of the special loan interest rate is equal to the refinancing rate of the State Bank applicable to the lending form secured by pledging valuable papers (hereinafter referred to as the State Bank’s pledged loan interest rate) on the disbursement date of the special loan, the starting date of the extension of the special loan.
- The interest rate for overdue principal of special loans is 130% of the nearest special loan interest rate within the permitted period of that special loan.
Additionally, no interest rate applies to overdue interest.
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