Circular No. 12/2020/TT-NHNN amending Circular 05/2020/TT-NHNN on refinancing for Bank for Social Policies

CIRCULAR
On amending and supplementing a number of articles of the Circular No. 05/2020/TT-NHNN dated May 07, 2020, on refinancing for the Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg dated April 24, 2020, 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 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 and the Decision No. 32/2020/QD-TTg dated October 19, 2020 on amending and supplementing a number of articles of the Decision No. 15/2020/QD-TTg;

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

The Governor of the State Bank hereby promulgates the Circular on amending and supplementing a number of articles of the Circular No. 05/2020/TT-NHNN dated May 07, 2020, on refinancing for the Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg dated April 24, 2020, on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic (hereinafter referred to as the Circular No. 05/2020/TT-NHNN).

Article 1. To amend and supplement a number of articles of the Circular No. 05/2020/TT-NHNN

1. To amend and supplement Article 1 as follows:

“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 the 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 dated April 24, 2020 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) and the Decision No. 32/2020/QD-TTg dated October 19, 2020 on amending and supplementing a number of articles of the Prime Minister’s Decision No. 15/2020/QD-TTg dated April 24, 2020 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. 32/2020/QD-TTg).”.

2. To amend and supplement Article 2 as follows:

“Article 2. Refinancing amount

The maximum refinancing amount provided by the State Bank to the Vietnam Bank for Social Policies in order to lend the employers to pay job-stopping wages under the Decision No. 15/2020/QD-TTg and the Decision No. 32/2020/QD-TTg (hereinafter referred to as refinancing) is VND 16,000 billion (sixteen trillion dong).”

3.To amend and supplement Clause 3, Article 4 as follows:

“3. The duration of refinancing disbursement starts from the date of signing in the first debt agreement until the end of January 31, 2021.”

4. To amend and supplement Article 6 as follows:

a) To amend and supplement Clause 3 as follows:

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

b) To amend and supplement Point a, Clause 4 as follows:

“a) Based on the rule contract on refinancing as prescribed in Clause 3 of this Article and the proposed loan amount of eligible employers as prescribed in the Decision No. 15/2020/QD-TTg and the Decision No. 32/2020/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 (the State Bank Operations Centre);”

5. To amend and supplement Article 7 as follows:

a) To amend and supplement Clauses 1 and 2 as follows:

“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 and the Decision No. 32/2020/QD-TTg (hereinafter referred to as employers) to the State Bank.

2. Until the end of January 31, 2021, if the Vietnam Bank for Social Policies fails to disburse all amounts received to disburse according to Clause 4, Article 6 of this Circular, before February 10, 2021, 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 time to the State Bank.”

b) To amend and supplement Clause 4 as follows:

“4.In case the employer pays debt payment, within 10 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.”

c) To add Points c and d to Clause 5 as follows:

“c) In case where measures specified at Point b of this Clause have been taken but the refinancing loan amount which has not been paid by the Vietnam Bank for Social Policies and the interest amount specified at Point a of this Clause are not fully recovered, the State Bank Operations Centre shall continue to monitor and deduct from the Vietnam Bank for Social Policies’ deposit accounts opened at the State Bank until such debt amount is fully recovered;

d) The recovering of refinancing loan and interest amount specified at Points b and c of this Clause shall comply with the State Bank’s regulations on the method of calculating and accounting interest collection and payment in the deposit and lending activities between the State Bank and credit institutions and other institutions.”

6. To amend and supplement Clauses 4 and 5, Article 8 as follows:

“4.Before February 20, 2021, the Vietnam Bank for Social Policies shall send a paper report on the disbursed refinancing loan data under the Decision No. 15/2020/QD-TTg and the Decision No. 32/2020/QD-TTg, which made according to Appendix V attached to this Circular directly or via the post office to the State Bank Governor and at the same time, send it to the Monetary Policy Department, the Banking Supervision Agency, the State Bank Operations Centre and the Department of Credit for Economic Sectors. The time for closing data starts from the date of accepting to disburse the refinancing loan to the end of January 31, 2021.

5. Within first 10 working days of the next month of the month when the Vietnam Bank for Social Policies has to pay refinancing loan specified in Clause 4, Article 7 of this Circular, the Vietnam Bank for Social Policies shall send a paper report on the repayment of the refinancing loan from the employer’s debt payment, which is made according to Appendix VI attached to this Circular directly or via the post office to the State Bank 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 first day of the month arising the employers’ debt payment until the last day of the month when the Vietnam Bank for Social Policies has to pay the refinancing loan.”.

Article 2.

To replace Appendices I, II, III, IV, V, VI and VII attached to the Circular No. 05/2020/TT-NHNN by Appendices I, II, III, IV, V, VI and VII attached to this Circular.

Article 3. Responsibility for implementation organization

1. After the effective date of this Circular, the Vietnam Bank for Social Policies shall send a written request for refinancing to the State Bank to carry out procedures for refinancing in accordance with Article 6 of the Circular No. 05/2020/TT-NHNN (which is amended and supplemented by this Circular).

2. The Chief of Office, the Director of the Monetary Policy Department, Heads of units affiliated to the State Bank of Vietnam, Directors of State Bank branches in provinces or centrally-run cities, and the Director of the Vietnam Bank for Social Policies shall be responsible for the implementation of this Circular.

Article 4. Implementation provisions

This Circular takes effect on November, 11, 2020./.

* All Appendices are not translated herein.