Vietnam to change the condition for refinancing based on special bonds

According to the Circular, the State Bank of Vietnam shall consider and decide on the refinancing of credit institutions that satisfy the following conditions:

- Credit institutions are not under special control or being processed due to violations according to Article 15 of Circular No. 15/2022/TT-NHNN.

- Credit institutions have contributed to risk prevention funds regarding all of the special bonds they own according to the law or approval documents of competent authorities for 12 consecutive months before preparing Refinancing Loan Applications.

- Credit institutions have complied with safety ratios specified in Clause 1 Article 130 of the Law on Credit Institutions (amended) and regulations of the State Bank of Vietnam for 12 consecutive months before preparing Refinancing Loan Applications.

- Special bonds that are used as the basis for refinancing shall adequately satisfy conditions prescribed in Article 4 of Circular No. 15/2022/TT-NHNN.

(Currently, Circular No. 18/2015/TT-NHNN stipulates the conditions for refinancing as follows:

- Credit institutions specified in Clause 1 Article 2 of Circular No. 18/2015/TT-NHNN that legally own special bonds deposited at the SBV Transaction Office that have not been paid by the VAMC.

- Credit institutions that have contributed to risk management funds regarding special bonds according to Decree No. 53/2013/ND-CP, Decree No. 34/2015/ND-CP, and instructions of the State Bank of Vietnam.

Circular No. 15/2022/TT-NHNN comes into force as of January 17, 2022 and replaces Circular No. 18/2015/TT-NHNN.

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