Procedures for reviewing credit extensions beyond the limit of credit institutions, branches of foreign banks from July 01, 2024 in Vietnam

Procedures for reviewing credit extensions beyond the limit of credit institutions, branches of foreign banks from July 01, 2024 in Vietnam (Image from the Internet)

On July 01, 2024, the Prime Minister of the Government of Vietnam issued Decision 09/2024/QD-TTg which sets forth the conditions, dossier, and procedures for the request for approval of maximum credit extension beyond the limit of credit institutions, branches of foreign banks in Vietnam.

Procedures for reviewing credit extensions beyond the limit of credit institutions, branches of foreign banks from July 01, 2024 in Vietnam

Article 6 of Decision 09/2024/QD-TTg regulates the procedures for reviewing credit extensions beyond the limit of credit institutions and branches of foreign banks in Vietnam as follows:

- The credit institution shall submit to the State Bank of Vietnam 01 set of dossiers as stipulated in Clause 1 Article 4 Decision 09/2024/QD-TTg either directly at the single-window department or via postal services.

- Within 15 days from the date of receipt of the complete dossier from the credit institution:

In case the dossier of the credit institution does not meet the conditions stipulated in Article 3 Decision 09/2024/QD-TTg, the State Bank of Vietnam shall issue a written notice to the credit institution specifying the conditions that the credit institution has not yet met.

In case the dossier of the credit institution is valid, the State Bank of Vietnam shall issue a document requesting opinions from the relevant ministries, central authorities, and local authorities on the economic-technical-legal aspects of the project, plan, and client requesting credit extension beyond the limit.

- Within 15 days from the date of receipt of the State Bank of Vietnam's request for opinions, the relevant ministries, central authorities and local authorities shall submit written opinions on the subjects under their management to the State Bank of Vietnam. Based on the opinions of the ministries, central authorities, and local authorities, the State Bank of Vietnam shall request the credit institution and the client to explain related issues (if any).

- Within 40 days from the date of receipt of the opinions of the ministries, central authorities, and local authorities or the explanations of the credit institution and the client, the State Bank of Vietnam shall verify the reasonableness and validity of the dossiers for the request for credit extension beyond the limit submitted by the credit institution:

In case the dossier of the credit institution does not meet the conditions stipulated in Article 3 Decision 09/2024/QD-TTg, the State Bank of Vietnam shall issue a written notice to the credit institution specifying the conditions that the credit institution has not yet met.

In case the dossier of the credit institution is reasonable and valid, the State Bank of Vietnam shall submit to the Prime Minister the Government of Vietnam for review and decision on the request for credit extension beyond the limit of the credit institution.

- Based on the request for credit extension beyond the limit of the credit institution, the opinions of the State Bank of Vietnam and the relevant ministries, central authorities, and local authorities, the Prime Minister the Government of Vietnam shall decide on the credit extension beyond the limit of the credit institution.

See more at Decision 09/2024/QD-TTg, which takes effect from July 01, 2024.

Decision 09/2024/QD-TTg replaces Decision 13/2018/QD-TTg which regulates the conditions, dossiers, procedures for requesting approval of the maximum credit extension beyond the limit of credit institutions, branches of foreign banks in Vietnam.

To Quoc Trinh

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