Will control lending to investment projects in the form of public-private partnership of great value as determined by credit institutions (Tentative)?
Current internal regulations of Vietnam credit institution?
Pursuant to Article 22 of Circular 39/2016/TT-NHNN, the internal regulations on lending of Vietnam credit institution are regulated as follows;
"Article 22. Internal regulations
1. Pursuant to the provisions of the Law on Credit Institutions, this Circular and relevant provisions of law, the credit institution shall promulgate internal regulations on lending and loan management in accordance with the characteristics of the loan. business operation score of the Vietnam credit institution (hereinafter referred to as internal regulations on lending).
2. The credit institution's internal regulations on lending are implemented throughout the system and must contain at least the following specific details:
a) Loan conditions; non-lending capital needs; lending method; lending interest rate and method of calculating loan interest; loan dossiers and documents submitted by customers to credit institutions in accordance with the loan's characteristics, loan types and target customers; debt collection; conditions, processes and procedures for debt rescheduling; overdue debt transfer;
b) Procedures for loan appraisal, approval and decision, specifying the maximum time limit for loan appraisal and decision; decentralization, authorization and responsibility of each individual and department in the appraisal, approval, lending decision and other jobs in the lending operation process;
c) Procedures for checking and supervising the process of borrowing capital, using loan capital and repaying loans of customers; decentralization, authorization and responsibility of each individual and department in inspecting and supervising the loan process, loan use and debt repayment;
d) The application of loan security measures, appraisal of loan security assets, and the management, supervision and monitoring of loan security assets are consistent with the loan security measures and characteristics of the assets. loan collateral and customers;
d) Termination of loans, debt settlement; exemption or reduction of loan interest and fees;
e) Identify types of risks that may arise in the lending process; the process of monitoring, assessing and controlling risks; risk treatment plan;
g) Control the lending to repay loans at credit institutions, repay foreign loans in order to prevent and prevent false reflection of credit quality. Control lending by revolving loan method and revolving loan method to manage customers' cash flow to ensure full recovery of loan principal and interest on time as agreed, reflecting credit quality.
3. Within 10 (ten) working days from the date of issuing new or amending or supplementing internal regulations on lending, microfinance institutions and people's credit funds shall submit such internal regulations. for State Bank branches in provinces and cities; other credit institutions to the State Bank of Vietnam (Banking Inspection and Supervision Agency)."
Thus, the internal regulations of a Vietnam credit institution are specified as above.
Will control lending to investment projecs in the form of public-private partnership of great value as determined by Vietnam credit institution (Tentative)?
Amending and supplementing regulations on internal regulations of Vietnam credit institution?
Pursuant to the provisions of Clause 7 Article 1 of the Draft Circular amending and supplementing a number of articles of Circular 39/2016/TT-NHNN amending as follows:
"Article 1. Amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, regulating lending activities of credit institutions , foreign bank branches for customers
...
7. Point a and point h, Clause 2, Article 22 shall be amended and supplemented as follows:
a) To amend and supplement Point a as follows:
"a) Lending conditions, specifying criteria for assessing the need for loans to be used for lawful purposes, having a feasible plan to use capital and having financial capacity to repay the debt; non-lending capital needs; lending method; lending interest rate and method of calculating loan interest; criteria for determining customers with transparent and healthy financial situation are entitled to borrow capital at the lending interest rate specified in Clause 2, Article 13 of this Circular; loan dossiers and documents submitted by the customer to the credit institution suitable to the loan's characteristics, loan type and target audience; debt collection; conditions , processes and procedures for debt rescheduling, overdue debt transfer;”
b) Add point h as follows:
h) Control lending for securities investment and business; loans to buy and trade real estate; lending for investment projects in the form of public-private partnership; loans for capital needs for life of great value as determined by credit institutions;"."
Thus, the Draft adds the control of lending for securities investment and business; loans to buy and trade real estate; lending for investment projects in the form of public-private partnership; loans for life capital needs of great value as determined by Vietnam credit institution.
What are the loan terms and conditions?
Pursuant to the provisions in Article 7 of Circular 39/2016/TT-NHNN on loan conditions as follows:
"Article 7. Conditions for borrowing capital
Vietnam credit institution consider and decide to lend when customers fully meet the following conditions:
1. Customer is a legal entity with civil legal capacity as prescribed by law. Customers being individuals aged full 18 years or older with full civil act capacity as prescribed by law or from full 15 years old to under 18 years old without loss or limitation of civil act capacity as prescribed by law. provisions of the law.
2. Demand for loans to use for lawful purposes.
3. Having a feasible capital use plan.
4. Have the financial ability to repay the debt.
5. In case a customer borrows from a credit institution at the lending interest rate specified in Clause 2, Article 13 of this Circular, the customer is assessed by the Vietnam credit institution as having a transparent and healthy financial position. ."
Thus, the loan conditions are specified as above.
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