What are the cases of granting special loans by the State Bank of Vietnam?

Under Clause 1, Article 4 of Circular 08/2021/TT-NHNN (Effective from October 27, 2021):

1. The State Bank of Vietnam shall use funding sources from performance of functions of the central bank in terms of money issuance for granting special loans to credit institutions placed under special control in the following cases:

a) A special loan shall be granted for supporting the liquidity of a credit institution that is in danger of becoming insolvent or has become insolvent and such insolvency threatens the stability of the banking system while the credit institution is placed under special control, even if the credit institution is implementing an approved restructuring plan or transfer plan;

b) A special loan with a preferential interest rate as low as 0% shall be granted to support the recovery of a commercial bank, cooperative bank, finance company or microfinance institution under their approved recovery plan;

c) A special loan with a preferential interest rate as low as 0% shall be granted to support the recovery of a commercial bank under an approved mandatory transfer plan;

d) A special loan with a preferential interest rate as low as 0% shall be granted to a commercial bank that is acquired before the effective date of the Law No. 17/2017/QH14 under the Prime Minister’s decision as prescribed in Clause 2 Article 3 of the Law No. 17/2017/QH14 (hereinafter referred to as “the Prime Minister’s decision”);

dd) A special loan with a preferential interest rate as low as 0% shall be granted to a commercial bank that is acquired before the effective date of the Law No. 17/2017/QH14 upon the completion of transfer under the approved transfer plan.

Sincerely!