What are responsibilities of commercial banks on interest subsidies provided by state budget in Vietnam?

What are regulations on responsibilities of commercial banks on interest subsidies provided by state budget in Vietnam?

According to Article 8 of Circular 03/2022/TT-NHNN on regulations on responsibilities of commercial banks on interest subsidies provided by state budget are regulated as follows:

1. Promulgate documents guiding provision of interest rate subsidies in accordance with Decree No. 31/2022/ND-CP and this Circular in order to organize synchronous implementation across the system and regulate the followings:

a) Details regarding provision of interest rate subsidies, appendices amending, adjusting loan agreements and promissory notes between commercial banks and borrowers;

b) Details agreed upon by commercial banks and borrowers regarding methods for recollecting interest rate subsidies in accordance with Article 9 of Decree No. 31/2022/ND-CP.

2. Determine and specify purpose of loan in accordance with Clause 2 Article 2 of Decree No. 31/2022/ND-CP under loan agreements or appendices amending loan agreements or promissory notes between commercial banks and borrowers.

3. Provide interest rate subsidies in accordance with Decree No. 31/2022/ND-CP and this Decree; notify the borrowers if interest rate subsidy is rejected.

4. Inspect and supervise the use of loan for the right purposes.

5. Monitor, keep documents, keep account, and record loans benefiting from interest rate subsidies in accordance with Decree No. 31/2022/ND-CP and this Circular.

6. Communicate policies on interest rate subsidies at commercial banks in accordance with Decree No. 31/2022/ND-CP and this Circular.

7. Publicize the end date of interest date subsidy on website of the commercial banks.

What are regulations on responsibilities of entities affiliated to SBV on interest subsidies provided by state budget in Vietnam?

In Article 9 of Circular 03/2022/TT-NHNN, responsibilities of entities affiliated to SBV on interest subsidies provided by state budget are specified as follows:

1. Credit Departments of Economic Sectors

a) Act as contact point to monitor results of interest rate subsidies of commercial banks and advise Governor of SBV to implement details under Points a, b, d, dd, and e Clause 1 Article 10 of Decree No. 31/2022/ND-CP;

b) Participate in the task force for support of interest rate subsidies in accordance with Point dd Clause 1 Article 10 of Decree No. 31/2022/ND-CP.

2. Monetary Policy Department:

a) Cooperate with Department of Credit for Economic Sectors in dealing with difficulties that arise during implementation of Decree No. 31/2022/ND-CP and this Circular;

b) Participate in the task force for support of interest rate subsidies in accordance with Point dd Clause 1 Article 10 of Decree No. 31/2022/ND-CP.

3. Accounting and Finance Department:

a) Provide guidance for issues regarding recording and finalization relating to granting loans under interest rate subsidy, payment, finalization of interest rate subsidies, recollection of loans benefiting from interest rate subsidies in accordance with Decree No. 31/2022/ND-CP and this Circular;

b) Cooperate with Department of Credit for Economic Sectors in dealing with difficulties that arise during implementation of Decree No. 31/2022/ND-CP and this Circular;

c) Participate in the task force for support of interest rate subsidies in accordance with Point dd Clause 1 Article 10 of Decree No. 31/2022/ND-CP.

4. Department of Statistics and Forecasting

a) Cooperate with Department of Credit for Economic Sectors in dealing with difficulties that arise during implementation of Decree No. 31/2022/ND-CP and this Circular;

b) Participate in the task force for support of interest rate subsidies in accordance with Point dd Clause 1 Article 10 of Decree No. 31/2022/ND-CP.

5. Central Banking Inspection and Supervision Authority

a) Inspect and supervise the granting of loans benefiting from interest rate subsidies of commercial banks;

b) Cooperate with Department of Credit for Economic Sectors in dealing with difficulties that arise during implementation of Decree No. 31/2022/ND-CP and this Circular;

c) Participate in the task force for support of interest rate subsidies in accordance with Point dd Clause 1 Article 10 of Decree No. 31/2022/ND-CP.

6. Department of Communication

a) Communicate and publicize interest rate subsidy policies in accordance with Decree No. 31/2022/ND-CP and this Circular;

b) Cooperate with Department of Credit for Economic Sectors in dealing with difficulties that arise during implementation of Decree No. 31/2022/ND-CP and this Circular.

7. SBV branches in provinces and central-affiliated cities

a) Monitor the implementation of interest rate subsidies and results thereof of branches of commercial banks in provinces and central-affiliated cities and produce reports; request Governor of SBV, Chairpersons of People’s Committees of provinces and central-affiliated cities to handle arising issues;

b) Inspect and supervise the granting of loans benefiting from interest rate subsidies of commercial banks and branches of commercial banks in provinces and central-affiliated cities and produce reports; request Governor of SBV to handle arising issues;

c) Report to People’s Committees of provinces and cities to request cooperation between local authorities and commercial banks in recollecting granted interest subsidies in accordance with Clause 3 Article 9 of Decree No. 31/2022/ND-CP.

Best Regards!