Principles for implementing debt sales at the Vietnam Development Bank from March 1, 2025

Principles for implementing debt sales at the Vietnam Development Bank from March 1, 2025

The principles for implementing debt sales at the Vietnam Development Bank are provided in Clause 2, Article 13 of Decision 02/2025/QD-TTg:

- The Development Bank conducts debt sales according to the provisions of law applicable to the purchase and sale of debts by credit institutions and foreign bank branches, except for the provisions stipulated in Decision 02/2025/QD-TTg;

- Debt sales activities must not contradict the terms stipulated in the credit contract/debt acceptance contract and the loan guarantee agreement already signed between the Development Bank, the customer, and the guarantor;

- Debt sales activities are subject to mutual agreement by the parties on the basis of compliance with the provisions of Decision 02/2025/QD-TTg and relevant legal provisions.

Additionally, the Board of Directors of the Development Bank reviews and decides on debt sales for debt recovery when all conditions specified in Clause 1, Article 13 of Decision 02/2025/QD-TTg are met as follows:

- The debt falls into one of the cases specified in Clause 1, Article 8 of Decision 02/2025/QD-TTg or is currently being monitored off-balance-sheet or has been written off from the balance sheet;

- There is no written agreement between the Development Bank and the customer prohibiting the sale of the debt;

- The debt is not being used to secure the performance of civil obligations at the time of sale, unless the secured party agrees in writing to the sale of the debt;

- The sale of debts valued lower than the outstanding principal balance yet to be recovered is only carried out for debts being monitored off-balance-sheet or have been written off from the balance sheet, and these sales must comply fully with the conditions stipulated in Clause 5, Article 13 of Decision 02/2025/QD-TTg.

For more details, refer to Decision 02/2025/QD-TTg, effective from March 1, 2025.

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