Vietnam: Guidance on disbursement of special loan fund

According to Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam (SBV), with regard to special loans granted under the consideration and decision of the SBV or the Prime Minister’s decision, the recovery plan, mandatory transfer plan or transfer plan approved:

- When there is a demand for disbursement of special loan fund, the credit institution shall send a request for disbursement to the special control board, in which amount and time of disbursement, and reasons thereof must be specified;

- Based on the demand for use of borrowed fund of the credit institution, the special control board shall consider giving written opinions about the credit institution’s request for disbursement to the SBV’s local branch or the Deposit Insurance of Vietnam or the Cooperative Bank of Vietnam, accompanied by the credit institution’s request for disbursement;

- The SBV’s local branch or the Deposit Insurance of Vietnam or the Cooperative Bank of Vietnam shall consider disbursing the special loan fund based on the special loan agreement, the credit institution’s request for disbursement and written opinions of the special control board.

Notably, the disbursement of special loans granted under the consideration and decision of the Deposit Insurance of Vietnam, the Cooperative Bank of Vietnam and other lending credit institutions shall be subject to their own internal regulations and agreements made with the borrowers.

View details at Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam, effective from January 29, 2018.

-Thao Uyen-

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