Plan for the Reorganization of the People's Credit Fund

To be specific, according to the provisions of Article 12 Circular 23/2018/TT-NHNN, the reorganization plan must be approved by the General Assembly of members of the credit fund being reorganized and signed by the Chairman of the Reorganization Council.

The reorganization plan of the people's credit fund (except for the case stipulated in Clause 3, Article 12, Circular 23/2018/TT-NHNN) must at least include the following contents:

- The name, address, and website (if any) of the reorganized people's credit fund;- The reasons for reorganization;- The financial situation and activities of the reorganized people's credit fund in the year immediately preceding the submission time of the dossier;- The actual value of the charter capital, non-performing loans up to the time of dossier submission; compliance with safety limits, rates ensuring safe operations of the reorganized people's credit fund in the year immediately preceding the dossier submission time;- The roadmap for implementation of the reorganization;- Projections regarding the name, operating location, head office location and network, operating duration, charter capital, scope, and activities of the people's credit fund formed after the reorganization in accordance with relevant legal regulations;- The projected business plan for each of the next 03 years of the people's credit fund after reorganization; in which at least must include the business objectives and plan, the expected compliance with safety limits and rates in each year's activities, analysis, and explanation of the feasibility of the plan;- Measures to transition information technology management systems, data transmission systems, internal control, and audit systems to ensure smooth operations during and after the reorganization of the people's credit fund;- Estimated costs arising during the reorganization process and principles for cost allocation for the reorganizing people's credit fund;- The plan for handling employees working at the reorganized people's credit fund;- Assessment of the impact of reorganization on the people's credit fund and plans to address any existing weaknesses or deficiencies (if any) to ensure safe and continuous operations during the reorganization;- The rights and obligations of the reorganizing people's credit fund, related organizations, and individuals (if any);- Principles and methods for the distribution of assets (for people's credit fund being divided, separated) based on agreements between the parties ensuring compliance with legal regulations;- The plan to handle special loans borrowed (if any).

The merger or consolidation plan of a people's credit fund under special control is drafted and approved according to the provisions of Clause 1, Article 149, Article 149a, and Article 149b of the Law on Credit Institutions (as amended and supplemented).

See more related content at: Circular 23/2018/TT-NHNN effective November 01, 2018.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE