Vietnam: Procedure for requesting approval for the Special bond issuance plan

According to Vietnam’s current regulations, special bonds are valuable papers issued by Vietnam Asset Management Company (VAMC) to buy bad debts of credit institutions.

The procedure for requesting approval for the Special bond issuance plan is specified in Article 13 of Circular No. 19/2013/TT-NHNN of the State Bank of Vietnam as follows:

Step 1: VAMC shall make an application for the approval for the Special bond issuance plan and send it to the State bank (Bank Supervision and Inspection Agency) directly or by post. The application consists of:

- A written request for the approval for the Special bond issuance plan signed by the legal representative of VAMC;

- The resolution of the Member assembly of VAMC on passing the Special bond issuance plan enclosed with the Special bond issuance plan specified in Article 12 of Circular No. 19/2013/TT-NHNN.

Time to make the application: Before December 15, VAMC shall make the application specified in Clause 1 of this Article to request the State bank to approve the Special bond issuance plan of the next year, except for the case where the time to make the application for approval of the Special bond issuance plan in 2013 of VAMC shall be decided by the Member assembly of VAMC.

Step 2: Within 15 working days from the day on which the valid application for approval of Special bond issuance plan, the State bank shall send VAMC a written response as to approving or not approving the Special bond issuance plan. If the plan is not approved, explanation must be provided in the written response sent to VAMC.

Step 3: Based on the Special bond issuance plan approved by the State bank, the capacity of VAMC, and the demand for settling bad debts of credit institutions, VAMC shall decide the issuance of special bonds to buy bad debts of credit institutions.

Note: Based on the monetary policy targets, the requirements for restructuring credit institutions, and the target of settling bad debts in each period, the State bank shall consider amending, superseding, or annulling the approved Special bond issuance plan where necessary.

View relevant provisions at Circular No. 19/2013/TT-NHNN of the State Bank of Vietnam, effective from September 15, 2013.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE