Additional regulations on handling collateral for special loans in Vietnam

Vo Ngoc Nhi

11:10, 01/11/2022

Circular 13/2022/TT-NHNN amending Circular 08/2021/TT-NHNN on special lending to credit institutions under special control promulgated by the Governor of the State Bank of Vietnam on October 28, 2022.

According to Vietnam's Circular 08/2021/TT-NHNN , there are amendments to regulations on handling collateral for special loans in Vietnam

Specifically, in case the borrower has used up all the security assets according to Clause 1 and Article 12 of Vietnam's Circular 08/2021, the following assets can be used as security for special loans, special loan extensions, and to implement Clause 2, Article 6 of Vietnam's Circular 08/2021; the provisions of Clauses 3, 4, and 5 and Article 12 of Vietnam's Circular 08/2021 are not required to apply to the outstanding balance of special loans:

- Mortgage of debt collection rights arising from the borrower's credit extension to customers (except credit institutions);

- Mortgage of property rights is the receivable interest arising from the credit extension of the borrower to customers (except credit institutions).

In which the collateral that the borrower has used up as prescribed in Clause 1 and Article 12 of Circular 08/2021/TT-NHNN includes:

- State bank bills, government bonds, bonds guaranteed to pay 100% of principal and interest upon maturity, and local government bonds are included in the list of valuable papers used in SBV transactions;

- Bonds issued by commercial banks where the state holds more than 50% of charter capital

- Bonds issued by credit institutions are not specially controlled.

Vietnam's Circular 08/2021/TT-NHNN takes effect from the date of issuance.

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