Procedure for Refinancing to Pay Wages for Workers Suspended Due to Covid-19

Procedure for loan refinancing to pay worker wages during COVID-19, 05/2020/TT-NHNN

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According to Circular 05/2020/TT-NHNN, the State Bank of Vietnam (hereinafter referred to as the State Bank) refinances the Vietnam Bank for Social Policies to lend to employers for paying worker stoppage wages with a maximum refinancing amount of VND 16,000 billion (sixteen thousand billion VND). The refinancing procedure is carried out as follows:

- The Vietnam Bank for Social Policies sends directly or via postal service 01 copy of the Loan Refinancing Request Form according to Annex I issued together with this Circular to the head office of the State Bank (Reception and Result Delivery Section).

- Within 03 working days from the date of receiving the Loan Refinancing Request Form from the Vietnam Bank for Social Policies as stipulated in Clause 1 of this Article, the Governor of the State Bank issues the Refinancing Decision for the Vietnam Bank for Social Policies.

- Within 03 working days from the date of receiving the Refinancing Decision stipulated in Clause 2 of this Article, the State Bank's Transaction Office and the Vietnam Bank for Social Policies execute the Principal Refinancing Contract with basic contents according to Annex II issued together with this Circular.

- The State Bank disburses refinancing funds to the Vietnam Bank for Social Policies each time according to the following procedure:

+ funds for paying worker stoppage wages approved by the provincial People's Committee according to the regulations in Decision 15/2020/QD-TTg dated April 24, 2020 by the Prime Minister of the Government of Vietnam on implementing policies to support people facing difficulties due to the COVID-19 pandemic (hereinafter referred to as Decision 15/2020/QD-TTg), the Vietnam Bank for Social Policies sends directly or via postal service 01 copy of the Refinancing Disbursement Request Form according to Annex III issued together with this Circular to the State Bank (Transaction Office).

+ Within 03 working days from the date of receiving the Refinancing Disbursement Request Form from the Vietnam Bank for Social Policies as stipulated in point a of this clause, the State Bank's Transaction Office approves and disburses refinancing based on the amount in the Refinancing Disbursement Request Form from the Vietnam Bank for Social Policies after the Debt Acceptance Contract according to Annex IV issued together with this Circular has been signed.

See the full text of the regulations in Circular 05/2020/TT-NHNN effective from May 7, 2020.

Thu Ba

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