Cases eligible to redeem sold debts of credit institutions in Vietnam

According to Vietnam's Circular 18/2022/TT-NHNN, the regulations on the redeem of debts by credit institutions are adjusted as follows:

- The debt seller does not buy back the sold debt, except in the following cases:

+ The credit institution redeems the debt from the specially controlled credit institution according to the provisions of Point a, Clause 12, and Article 5 of Circular 09/2015/TT-NHNN;

Credit institutions support to redeem the debts to specially controlled credit institutions according to the approved plan for recovery of specially controlled credit institutions according to the provisions of Clause 6 and Article 148d of the Law on Credit Institutions;

Credit institutions receiving compulsory transfer repurchase debts to commercial banks subject to compulsory transfer under the provisions of Point c, Clause 12, and Article 5 of Vietnam's Circular 09/2015/TT-NHNN.

- Credit institutions buy back the debts specified at points a(ii) and a(iii) of Clause 6 and Article 5 of Vietnam'sCircular 09/2015/TT-NHNN according to the contents of the commitment to buy back the debt in the restructuring plan approved by the competent authority in the following cases:

+ Redeemed debt is used as collateral for special loans at the State Bank by specially controlled credit institutions, but it is no longer classified as qualified debt under State Bank regulations and is sold alongside other qualified debt.

+ When the special loan repayment is due, the specially controlled credit institution does not have enough money to repay the special loan to the state bank according to the special loan repayment plan.

(Currently, debt sellers redeem debts.)

Vietnam's Circular 18/2022/TT-NHNN takes effect on February 9, 2023.

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