Recently, the Governor of the State Bank of Vietnam issued Circular No. 18/2015/TT-NHNN on refinancing on the basis of special bonds of the Vietnam Credit Institutions Asset Management Company.
Currently, the State Bank of Vietnam refinances credit institutions to support credit institutions' operating capital during the process of handling bad debts according to Decree No. 53/2013/ND-CP and Decree No. 34/2015/ND-CP of Vietnam’s Government.
According to Circular No. 18/2015/TT-NHNN, the State Bank shall consider and decide on refinancing when the credit institution fully meets the following conditions:
- Being a credit institution specified in Clause 1, Article 2 of this Circular, legally owning special bonds deposited at the State Bank's Trading Department that have not been paid by the Asset Management Company of Vietnam Credit Institutions (hereinafter referred to as the Asset Management Company).
- Setting up risk provisions for special bonds according to the provisions of Decree No. 53/2013/ND-CP, Decree No. 34/2015/ND-CP and guidance of the State Bank.
The level of refinancing for credit institutions is decided by the Governor of the State Bank based on the objectives of operating monetary policy, total par value of special bonds, results of risk provisioning for special bonds and results of bad debt settlement but not exceeding 70% of the total par value of special bonds; for credit institutions implementing an approved restructuring plan, the refinancing level is decided by the Governor of the State Bank on a case-by-case basis but must not exceed 100% of the total par value of the special bonds.
View more details at Circular No. 18/2015/TT-NHNN of the State Bank of Vietnam, effective from December 10, 2015.
Thu Ba
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