Circular 05/2020/TT-NHNN refinancing for Vietnam Bank for Social Policies due to Covid-19

CIRCULAR
On refinancing for Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic

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Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amending and supplementing a number of Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 on defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Resolution No. 42/NQ-CP dated April 09, 2020 on measures to support people affected by the COVID-19 epidemic;

Pursuant to the Government’s Decision No. 15/2020/QD-TTg on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic;

At the proposal of the Director of the Monetary Policy Department;

The State Bank Governor hereby promulgates a Circular on refinancing for Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic.

Article 1. Scope of regulation and subjects of application

This Circular prescribes the refinancing of the State Bank of Vietnam (hereinafter referred to as the State Bank) for Vietnam Bank for Social Policies in order to lend the employers to pay job-stopping wages according to the Prime Minister’s Decision No. 15/2020/QD-TTg on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic (hereinafter referred to as refinancing).

Article 2. Refinancing amount

The maximum amount of refinancing is VND 16,000 billion (sixteen trillion dong).

Article 3. Refinancing interest rate

1. The refinancing interest rate is 0% per year.

2. After the refinancing expiration date, the interest rate shall be 0% per year.

Article 4. The duration of refinancing and refinancing disbursement

1. The duration of refinancing is 364 days, from the next day of the date on which the State Bank disburses the loan refinancing for the Vietnam Bank for Social Policies.

2. The duration of refinancing specified in Clause 1 of this Article shall be applied for each disbursement as prescribed in Clause 4, Article 6 of this Circular.

3. The duration of refinancing disbursement starts from the date of signing in the first debt agreement until the end of July 31, 2020.

Article 5. Collaterals

The State Bank shall refinance for the Vietnam Bank for Social Policies without requiring for collaterals.

Article 6. Refinancing order

1. The Vietnam Bank for Social Policies shall send 01 copy of the written request for refinancing which is made according to Appendix I attached to this Circular directly or via the post office to the head office of the State Bank (Reception and Return Section).

2. Within 03 working days from the date on which the Vietnam Bank for Social Policies’ written request for refinancing as prescribed in Clause 1 of this Article is received, the State Bank Governor shall promulgate a decision on refinancing for the Vietnam Bank for Social Policies.

3. Within 03 working days from the date on which the decision on refinancing as prescribed in Clause 2 of this Article is received, the State Bank Operations Center and the Vietnam Bank for Social Policies shall enter into a rule contract on refinancing with some basic content according to Appendix II attached to this Circular.

4. The State Bank shall disburse refinancing for the Vietnam Bank for Social Policies each time in the following order:

a) Based on the rule contract on refinancing as prescribed in Clause 3 of this Article and the List of employers eligible for borrowing to pay job-stopping wages approved by the provincial People’s Committee according to the Prime Minister Decision No. 15/2020/QD-TTg on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic (hereinafter referred to as the Decision No. 15/2020/QD-TTg), the Vietnam Bank for Social Policies shall send 01 written request for refinancing disbursement which is made according to Appendix III attached to this Circular directly or via the post office to the State Bank (Operations Center).

b) Within 03 working days from the date on which the Vietnam Bank for Social Policies’ written request for refinancing disbursement as prescribed in Clause a of this Article is received, the State Bank Operations Center shall approve and disburse refinancing for the Vietnam Bank for Social Policies after the debt agreement which is made according to Appendix IV attached to this Circular is signed.

Article 7. Payment for refinancing loans

1. At the due time of the refinancing loan, the Vietnam Bank for Social Policies must pay all principal debt for the refinancing loan which is disbursed under Clause 4, Article 6 of this Circular from the payment of the employers borrowing capitals according to the Decision No. 15/2020/QD-TTg (hereinafter referred to as employers) to the State Bank.

2. Until the end of July 31, 2020, if the Vietnam Bank for Social Policies fails to disburse all amounts received to disburse according to Clause 4, Article 6 of this Circular, by August 15, 2020 at the latest, the Vietnam Bank for Social Policies must pay the remaining amounts that has not been fully disbursed in the order from the debt agreement with outstanding loan signed at the earliest for the State Bank.

3.At the due time of the refinancing loan, if the Vietnam Bank for Social Policies fails to pay off the debt under Clause 1 of this Article, the State Bank shall transfer the refinancing amount to the overdue monitoring amount according to the State Bank’s regulations on methods of calculating and accounting the collection and interest payment in the activities of accepting deposits and lending between the State Bank and credit institutions.

4.In case the employer pays debt payment, within 05 working days at the beginning of the next month, the Vietnam Bank for Social Policies must use the entire debt payment amount of the employer in the month to repay the refinancing loan in the order from the earliest signed debt agreement (including the case of refinancing loan has turned to overdue monitoring or the refinancing loan is not due), unless the employer debt has been written off as prescribed in Clause 4, Article 17 of the Decision No. 15/2020/QD-TTg.

5. In case the Vietnam Bank for Social Policies is detected to receive the employer’s debt payment without repaying loan refinancing in accordance with Clauses 1 and 4 of this Article, and/or the Vietnam Bank for Social Policies fails to pay the loan refinancing in accordance with Clause 2 or this Article, the State Bank shall apply the following measures:

a) To apply the interest rate with the same rate of the overdue lending interest of the Vietnam Bank for Social Policies to an employer according to the Decision No. 15/2020/QD-TTg (12% per year) for the unpaid amount, counting from the next day of the date of payment as prescribed in this Circular to the date that the Vietnam Bank for Social Policies pays the unpaid amount in full.

b) To withdraw an amount from the deposit account of the Vietnam Bank for Social Policies at State bank to recover the refinancing loan which has not been paid by the Vietnam Bank for Social Policies and the interests as prescribed in Point a of this Clause within 05 working days from the date on which the State Bank Operations Center receives a writing notifying violations specified in Point b, Clause 2 and Point b, Clause 5, Article 9 of this Circular.

6.The State Bank shall handle the risk with the refinancing loan of the Vietnam Bank for Social Policies under Point b, Clause 1, Section IV of the Government’s Resolution No. 42/NQ-CP dated April 09, 2020 on measures to support people affected by the COVID-19 epidemic and relevant regulations.

Article 8. Responsibilities of the Vietnam Bank for Social Policies

1. To promptly provide sufficient and accurate documents and file on refinancing to the State Bank. To take responsibility before law for the accuracy and legality of such provided documents and file.

2. To sign in the rule contract on refinancing and debt agreement with the State Bank Operation Center, to disburse the loan refinancing amount and pay for refinancing in accordance with this Circular.

3. To use the refinancing amount for the right purpose; monitoring, accounting and separately managing the refinancing amount as prescribed in this Circular.

4.By August 20, 2020 at the latest, the Vietnam Bank for Social Policies shall send a paper report on the disbursed refinancing amount under the Decision No. 15/2020/QD-TTg, according to Appendix V attached to this Circular directly or via the post office to the State Bank Governor and at the same time, to send it to the Monetary Policy Department, the Banking Supervision Agency, the State Bank Operations Center and the Department of Credit for Economic Sectors. The time for closing data starts from the date of acepting to disburse the refinancing loan to the end of July 31, 2020.

5. Within first 10 working days of the next month of the month arising the employer’s debt payment, the Vietnam Bank for Social Policies shall send a paper report on the repayment of the refinancing loan from the employer’s debt payment according to Appendix VI attached to this Circular directly or via the post office to the State Bank (Monetary Policy Department, Banking Supervision Agency, State Bank Operations Center and Credit Department of economic sectors). The time for closing data is from the first day to the last day of the month arising the debt payment of the employer.

6. To expedite and recover loans for employers to pay loan refinancing to the State Bank.

Article 9. Responsibilities of State Bank units

1. The Monetary Policy Department shall

a) To act as a focal point in submitting the State Bank Governor to promulgate the decision on refinancing for the Vietnam Bank for Social Policies in accordance with Clause 2, Article 6 of this Circular;

b) To act as a focal point in handling the arising concerns relating to the regulations in this Circular.

2. The Banking Supervision Agency shall

a) To supervise, inspect and handle violations according to its competency to the Vietnam Bank for Social Policies in the fulfillment of the provisions of this Circular;

b) If the Vietnam Bank for Social Policies is detected to receive the employer’s debt payment without repaying loan refinancing in accordance with Clauses 1 and 4 of Article 7, and/or the Vietnam Bank for Social Policies fails to pay the loan refinancing in accordance with Clause 2 or Article 7, the Banking Supervision Agency shall send a written notice on violations to the Vietnam Bank for Social Policies, State Bank Operations Center, Monetary Policy Department and Credit Department of economic sectors.Such a notice must clearly state the violations and handling measures in accordance with Clause 5, Article 7 of this Circular.

3. The State Bank Operations Center shall

a) To sign the rule contract on refinancing, approval and disbursement, collection of refinancing debt and transferring the refinancing amount to the overdue monitoring amount in accordance with this Circular and relevant law provisions;

b) To take measures as prescribed in Clause 5, Article 7 of this Circular after receiving a notice on violations specified in Point b, Clause 1 and Point b, Clause 5 of this Article;

c) Within 15 working day of the beginning of the month following the reporting month, to report the State Bank Governor about the refinancing data of the Vietnam Bank for Social Policies in accordance with Appendix VII attached to this Circular; at the same time, to send to the Monetary Policy Department, Banking Supervision Agency and Credit Department of economic sectors. The time for closing data is from the first day to the last day of the reporting month.

4. The Finance - Accounting Department shall

a) To provide guidance on accounting related to the refinancing for the Vietnam Bank for Social Policies in accordance with this Circular;

b) To act as a focal point in handling arising risks for the refinancing amount of the Vietnam Bank for Social Policies.

5. The State Bank branches in provinces and centrally-run cities shall

a) To supervise, inspect and handle violations according to its competency to local units affiliated to the Vietnam Bank for Social Policies in the fulfillment of the provisions of this Circular;

b) If the Vietnam Bank for Social Policies is detected to receive the employer’s debt payment without repaying loan refinancing in accordance with Clauses 1 and 4 of Article 7, and/or the Vietnam Bank for Social Policies fails to pay the loan refinancing in accordance with Clause 2 or Article 7, the State Bank branches in provinces and centrally-run cities shall send a written notice on violations to the Vietnam Bank for Social Policies, State Bank Operations Center, Monetary Policy Department and Credit Department of economic sectors. Such a notice must clearly state the violations and handling measures in accordance with Clause 5, Article 7 of this Circular.

6. The Department of Information Technology shall

To organize to update and fix the specialized software system in accordance with this Circular.

Article 10.Effect

1. This Circular takes effect on May 07, 2020.

2. The Chief of Ministerial Office, the Director General of the Monetary Policy Department, Heads of units under the State Bank of Vietnam, Directors of State Bank branches in provinces or centrally-run cities, Chairpersons of the Boards of Directors and General Director of Vietnam Bank for Social Policies shall be responsible for implementing this Circular./.

* All Appendices are not translated herein.