Vietnam: Procedure for considering refinancing and extending refinancing from December 10, 2015

According to Article 9 of Circular No. 18/2015/TT-NHNN of the State Bank of Vietnam, when there is a need for a refinancing loan or refinancing extension, the credit institution shall send 05 sets of applications directly or by mail to the State Bank (Monetary Policy Department). The application includes:

- Application for refinancing or refinancing extension; which states: name of credit institution, deposit account number in Vietnam dong at the State Bank's Transaction Office, amount, purpose (specify specific purpose), requested term for refinancing or refinancing extension, total face value of special bonds as a basis for refinancing loans or refinancing extension, commitment to special bonds as a basis for refinancing loans or refinancing extensions that are legally owned by credit institutions;

- List of special bonds used as a basis for refinancing loans or refinancing extensions at the State Bank with comparison confirmation from the Asset Management Company according to Appendix I issued with this Circular.

Within 02 working days from the date of receiving complete documents requesting refinancing or refinancing extension as prescribed in Clause 1 of this Article, the Monetary Policy Department consults with the Banking Inspection and Supervision Agency, the State Bank Transaction Department and the Asset Management Company.

Within 05 working days from the date of receiving the written request for comments from the Monetary Policy Department as prescribed in Clause 2 of this Article:

- State Bank Transaction Department: Confirm the List of special bond balances deposited at the State Bank's Transaction Center as a basis for refinancing or refinancing extension according to Appendix II issued with this Circular and send it to the Monetary Policy Department, and at the same time send it to the Banking Inspection and Supervision Agency;

- Asset management company: Send the List of special bonds as a basis for refinancing or refinancing extension for credit institutions according to Appendix III issued with this Circular to the Monetary Policy Department, at the same time, send it to the Banking Inspection and Supervision Agency;

- Banking Inspection and Supervision Agency: Assess whether the credit institution meets the refinancing conditions specified in Article 4 of this Circular, financial capacity, ability to set up risk provisions for special bonds, need for refinancing loans according to the proposed purpose of the credit institution, propose the refinancing level, refinancing extension level, refinancing term, refinancing extension period for each credit institution, and send it to the Monetary Policy Department.

Within 05 working days from the date of receiving full comments from the units as prescribed in Clause 3 of this Article, the Monetary Policy Department synthesizes and, based on the objectives of operating monetary policy, proposes to handle requests for refinancing or refinancing extension of credit institutions and have a document seeking opinions from the Banking Inspection and Supervision Agency, the State Bank's Transaction Department, the Department of Credit for Economic Sectors, and the Asset Management Company.

Within 05 working days from the date of receiving the written request for comments from the Monetary Policy Department as prescribed in Clause 4 of this Article, the Banking Inspection and Supervision Agency, the State Bank Transaction Department, the Department of Credit for Economic Sectors and the Asset Management Company have sent their opinions to the Monetary Policy Department.

​Within 02 working days from the date of receiving full comments from the units as prescribed in Clause 5 of this Article, the Monetary Policy Department synthesizes and submits to the Governor of the State Bank for consideration and decision on requests for refinancing or refinancing extension of credit institutions.

Within 05 working days from the date of receiving the Decision of the Governor of the State Bank on refinancing or extending refinancing for credit institutions, the Director of the State Bank's Transaction Department signs credit contracts, disburses refinancing or extends refinancing for credit institutions.

View full text at Circular No. 18/2015/TT-NHNN of the State Bank of Vietnam, effective from December 10, 2015.

Thu Ba

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