Vietnam: Supplementing the responsibilities of credit institutions in serving agricultural development

According to Circular No. 25/2018/TT-NHNN of the State Bank of Vietnam, in order to serve the policy of agricultural and rural development, credit institutions shall have the following responsibilities:

- Complying with the regulations stated in Article 23 of Decree No. 55/2015/ND-CP of Vietnam’s Government.

- Providing guidelines on the following contents for the purpose of consistent implementation in the credit institution system:

+ Grant association loans for agricultural production;

+ Applications and procedures for debt charge-off. Credit institutions shall be responsible for the accuracy, legitimacy and eligibility of documents, statistics and borrowers related to requests for debt charge-off.

- Proactively cooperating with local governments of all levels and socio-political organizations in disseminating the credit policy for agricultural and rural development.

- Specifying and including use of loans for agricultural and rural development in credit agreements, monitoring dossiers of loans of the agriculture and rural area sector separately.

- Submitting to the State Bank reports on credit outstanding debts of the agriculture and rural area sector according to regulations on the statistical reporting system applied to credit institutions and foreign bank branches; quarterly reports (before the 15th of the first month of the next quarter) on debt repayment rescheduling and debt classification retention for the agriculture and rural area sector according to the specimen enclosed with this Circular.

- Inspecting and supervising debt rescheduling and debt classification retention in the credit institution system to ensure accurate debt reports.

View more details at Circular No. 25/2018/TT-NHNN of the State Bank of Vietnam, effective from December 10, 2018.

- Thanh Lam -

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