Can credit guarantee fund refuse to fulfill the guarantee obligations for the business in Vietnam?
Can credit guarantee fund refuse to fulfill the guarantee obligations for the business in Vietnam? What does repayment sum of credit guarantee fund for the business in Vietnam comprise?
My company has signed a guarantee contract with the Credit Guarantee Fund. Until the due date, our partner has taken measures to recover the debt for the guarantee but it is still not enough. Will the Guarantee Fund have to perform this guarantee obligation for my company? What repayment sum will the Fund pay for the guarantee?
1. Can credit guarantee fund refuse to fulfill the guarantee obligations for the business in Vietnam?
Pursuant to Article 32 of Decree 34/2018/ND-CP stipulating cases where the guarantor is entitled to not perform the guarantee obligation as follows:
The guarantor is entitled not to fulfill the guarantee obligations in the following cases:
1. The obligee has not applied all measures to collect debts from the obligor as prescribed in Clause 1 Article 30 of this Decree.
2. The obligee violates laws on lending regulations of the lender during the extending of credit to the obligor, or fails to inspect, supervise or inspect, supervise not in a timely manner, leading to the consequence that the obligor uses the loan or asset derived from the loan not for the purposes mentioned in the credit contract.
3. Other cases agreed by the guarantor, the obligee and the obligor in the credit guarantee contract and guarantee certificate.
Thus, the Credit Guarantee Fund is entitled to not perform the guarantee obligation if it violates one of the above cases. In case the guarantee company has not taken all measures to recover debts against the guaranteed company, the Credit Guarantee Fund may refuse to perform the guarantee obligation in Vietnam.
2. What does repayment sum of credit guarantee fund for the business in Vietnam comprise?
According to the provisions of Article 33 of Decree 34/2018/ND-CP on fulfillment of credit guarantee obligations as follows:
1. After sending a notice of approval for debt repayment on behalf of the obligor to the obligee prescribed in Clause 2 Article 30 of this Decree, the guarantor shall transfer money to the obligee on schedule specified in this notice. According to the financial situation, the guarantor may deal with the obligee to transfer the guaranteed amount at one time or multiple times.
2. The repayment sum includes principal and interests as agreed upon in the guarantee certificate, credit guarantee contract.
3. Before transferring the money, the guarantor and the obligee must reach an agreement to dispose of the collateral if the collateral is both put up for the loan and the guarantee as prescribed in this Decree.
According to this Article, the Credit Guarantee Fund will pay the repayment sum includes principal and interests as agreed upon in the guarantee certificate, credit guarantee contract in Vietnam.
Best Regards!
