Legal Counselling

When shall the State Bank of Vietnam consider granting special loans to credit institutions placed under special control?

10:42, 02/02/2018

On January 26, 2018, the State Bank of Vietnam issued Circular No. 01/2018/TT-NHNN, which specifies cases in which the State Bank of Vietnam shall consider granting special loans to credit institutions placed under special control.

According to Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam (SBV), SBV shall consider granting special loans to credit institutions placed under special control in the following cases:

- The loan is used to assist the liquidation of the credit institution that is facing insolvency or has become insolvent and such insolvency threatens the stability of the system while the credit institution is placed under special control, even if the credit institution is implementing the approved restructuring plan;

- The loan is granted with a preferential interest rate as low as 0% to a commercial bank, cooperative bank, finance company or microfinance institution to implement the recovery plan approved;

- The loan is granted with a preferential interest rate as low as 0% to a commercial bank to implement the mandatory transfer plan approved;

- The loan is granted with a preferential interest rate as low as 0% to a commercial bank acquired before the date of entry into force of the Law No. 17/2017/QH14 according to the Prime Minister’s decision;

- The loan is granted with a preferential interest rate as low as 0% to a commercial bank acquired before the date of entry into force of the Law No. 17/2017/QH14 upon the completion of transfer according to the transfer plan approved.

View details at Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam, effective from January 29, 2018.

-Thao Uyen-

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