Vietnam: Some notes regarding payments in the open market

16:08, 05/01/2016

Cases involving members not signing the specific contract, not making payment or not complying with the contract are specified in Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam on open market operation.

According to Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, cases involving members not signing the specific contract, not making payment or not complying with the contract shall be handled as follows:

- When the repurchase payment term is due but the bid-winning member fails to make payment or fails to pay the full payable amount, the State bank (Transaction center) shall automatically make deduction from such member’s checking account at the State bank to make up for the deficit.

- If the checking account of such member does not have enough money, the State bank shall recognize the deficient amount thereof as overdue debt and the member must bear the late payment interest rate.

- Concurrently, the State bank shall temporarily hold all the financial instruments and continue to make deduction from the member’s checking account at the State bank to cover the deficient amount (including late payment interest rate) if such checking account has enough money and then return the financial instruments to the member.

- The State bank may consider selling the financial instruments not yet matured or make payment with the issuing organization when the financial instruments are due to recover the deficient amount (including late payment interest rate).

Notes regarding payments in the open market are specified in Circular No. 42/2015/TT-NHNN of the State Bank of Vietnam, which takes effect from April 30, 2016.

- Khanh Chi -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

14 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn