Circular No. 24/2019/TT-NHNN dated November 28, 2019 of the State Bank of Vietnam on promulgating the re-financing in the form of sub-lending under credit dossiers for credit institutions

CIRCULAR

Promulgatingre-financing in the form of sub-lending under credit dossiers for credit institutions

Pursuant to the Law on the 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 in the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 02, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

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

The Governor of the State Bank of Vietnam hereby issues the Circular promulgating the re-financing in the form of sub-lending under credit dossiers for credit institutions.

CHAPTER I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Circular promulgates the re-financing of the State Bank of Vietnam (hereinafter referred to as the State Bank) in the form of sub-lending under credit dossiers for credit institutions.

2. The State Bank shall re-finance in the form of sub-lending under credit dossiers for credit institutions established and operated in accordance with the amended and supplemented Law on Credit Institutions, including:

a) Commercial Banks;

b) Cooperative Banks;

c) Finance company and financial leasing company;

Article 2. Re-financing currency

The currency used in re-financing in the form of sub-lending under credit dossiers is Vietnam dong.

Article 3. Principles for compiling and submitting a dossier of request for re-financing loans and the extension of re-financing loans

1. The dossier must be compiled in Vietnamese. Documents included in the dossier must be signed by legal representatives of the credit institution.

2. Documents included in the dossier must be the original versions or copies issued from the master record, or certified copies, or copies attached with the original for comparison.

3. The dossier shall be submitted directly or by post.

Article 4. Re-financing purposes

The State Bank shall re-finance in the form of sub-lending under credit dossiers for the following purposes:

1. To support credit institutions to pay deposits to customers - individuals and organizations (including other credit institutions and branches of foreign banks), or to pay debts to other credit institutions and branches of foreign banks (hereinafter referred to as liquidity support)

2. To provide loans to industries, sectors and fields in which the State Bank are prescribed by the Government’s Decree to implement support policies by means of monetary policy instruments (hereinafter referred to support loans for industries and sectors encouraged for development).

Article 5. Credit dossier for re-financing loans and extension of re-financing loans

The credit dossier for re-financing loans and the extension of re-financing loans in the form of sub-lending under credit dossiers is the dossier for loans in Vietnam dong of credit institutions to their customers.

Article 6. Interest rates

1. The interest rate for re-financing loans and extended re-financing loans in the form of sub-lending under credit dossiers is the interest rate announced by the State Bank in each period, at the time the re-financing loan is disbursed or extended.

2. The interest rate for overdue re-financing loan is 150% of the interest rate applicable to the re-financing loan.

Article 7. Time duration of re-financing loans and extended re-financing loans

1. The time duration for re-financing loans in the form of sub-lending under credit dossiers shall be considered and prescribed by the State Bank, and the time duration must be less than 12 months.

2. The time duration for each extension must not exceed the initial time duration for re-financing loans; the total time duration for re-financing and extended re-financing loans must not exceed 12 months.

Article 8. Payment for re-financing debts and handlings of credit institutions failing to repay debts on time

1. Credit institutions must pay off the principal and interest debts to the State Bank when the re-financing loans under credit dossiers are expired.

2. Credit institutions may prepay the re-financing debts under credit dossiers.

3. In case credit institutions are found violating regulations as prescribed in Clause 1 and Clause 2, Article 11 of this Circular, credit institutions must pay off the principal and interest of re-financing debts in form of sub-lending under credit dossiers for the purpose of providing loans to sectors and fields encouraged for development (including the extended re-financing loans) within 10 working days after the State Bank issues a written notice of breach to the institutions.

4. In case that the re-financing loans in form of sub-lending under credit dossiers are due but credit institutions fail to pay all debts as prescribed in Clause 1 of this Article, and are not approved by the State Bank for extension or fail to pay all debts as prescribed in Clause 3 of this Article, the State Bank shall apply the following handling measures:

a) Applying overdue monitoring to the re-financing amount under regulations of the State Bank on methods of calculating and accounting the interest collection and payment in deposit and lending activities between the State Bank and credit institutions; applying the interest rate to the principal of overdue re-financing loans as prescribed in Clause 2, Article 6 of this Circular;

b) Withdrawing money from the account in Vietnam dong of credit institutions at the State Bank after the State Bank issue a written notice to credit institutions on the withdrawal of money in Vietnam dong for debt recovery;

c) Recovering debts from other sources of credit institutions (if any).

Article 9. Conversion of re-financing loans to special loans

The conversion of re-financing loans in form of sub-lending under credit dossiers to special loans shall be conducted under law provisions of the State Bank on special loans to credit institutions under special control.

Article 10. Exemption and reduction of interest of re-financing loans

The State Bank must not apply exemption and reduction of interest of re-financing loans in form of sub-lending under credit dossiers for credit institutions.

Article 11. Handlings of violations

1. In case of receiving information from competent agencies or through inspection, supervision detecting that a credit institution provides inaccurate information and data in the application dossier for re-financing loans or extended re-financing loans in form of sub-lending under credit dossiers and in the report on the use of re-financing loans made according to Appendix No. 08 to this Circular; or detecting that the credit institution fails to comply with the provisions defined at Point a, Clause 6 Article 21 of this Circular, the State Bank shall not consider a request for re-financing loans or the extension of a re-financing loan for the purposes specified in Clause 2, Article 4 of this Circular for the credit institution within 01 time starting from the date the State Bank issues a written notice of violations to the credit institution.

2. In case of receiving information from competent agencies or through inspection, supervision detecting that a credit institutions uses re-financing loans for improper purposes or fails to fulfill the responsibilities prescribed at Point b and Point c, Clause 6, Article 21 of this Circular, the State Bank shall not consider the request for re-financing loan or extending re-financing loans for any purposes specified in Clause 2, Article 4 of this Circular for the credit institution in the next 02 years starting from the date the State Bank issues a written notice of violations to the credit institution.

3. In case a credit institution is found violating the provision of Clause 1 and Clause 2, Article 4 of this Article, the State Bank shall suspend the disbursement under the decision on re-financing for purposes specified in Clause 2, Article 4 of this Circular (if any).

CHAPTER II

SPECIFIC PROVISIONS

Section 1

RE-FINANCING IN THE FORM OF SUB-LENDING UNDER CREDIT DOSSIERSTO SUPPORT LIQUIDITY

Article 12. Conditions for re-financing loans and the extension of re-financing loans

The State Bank shall consider and decide to re-finance or extend the re-financing in the form of sub-lending credit dossiers for any credit institutions which satisfy the following conditions:

1. Having trouble with solvency and not being under special control.

2. Having commitment to not having or having used up all valuable papers on the list of valuable papers used in transactions of the State Bank on the date of the written request for re-financing loans or the written request for the extension of re-financing loans and the commitment that loans - in the list of credit dossiers (is a list of loans in accordance with Appendix No. 03 to this Circular) to re-finance or extend the re-financing - fully meet the criteria specified in Article 13 of this Circular.

Article 13. Criteria of loans in the list of credit dossiers

Loans included in the list of credit dossiers compiled by credit institutions for re-financing or extending re-financing loans in the form of sub-lending under credit dossiers must meet the following criteria:

1. Loans are in Vietnam dong, are secured by properties under law provisions for the whole loan value and are classified into debt Group 1 in accordance with the State Bank s regulations on classification of debts for the credit institutions

2. Loans are not for sectors or fields in which the Government or the State Bank require credit institutions to restrict and control credits in each period.

3. Loans are not used for any other purposes.

4. At the date of the written request for re-financing loans or the Request for extending re-financing loans, the remaining term of the loans must be at least 60 days longer than the requested time for re-financing loans or extending re-financing loans.

Article 14. Amount of re-financing loans or extended re-financing loans

The amount of money for re-financing loans or extended re-financing loans in form of sub-lending under credit dossiers shall be considered and decided by the State Bank on the basis of the actual solvency of credit institutions but shall not exceed 60% of the total outstanding principal of loans in the list of credit dossiers for re-financing loans or extending re-financing loans.

Article 15. Procedures for considering re-financing loans and the extension of re-financing loans

1. When needing to refinance or extend the re-financing in the form of sub-lending under credit dossiers, credit institutions shall send 01 set of dossiers to the State Bank (the Monetary Policy Department). In case of requesting the extension of re-financing loans, credit institutions must send dossiers to the State Bank at least 20 working days prior to the due date of debt payment. If the credit institution s dossiers are invalid as prescribed, within 02 working days from the date of receipt of dossiers, the State Bank (the Monetary Policy Department) shall issue a written request to the credit institutions for supplementing and completing the dossiers.

The dossier of request for re-financing loans or the extension of re-financing loans shall include the following documents:

a) The written request for re-financing loans made according to the Appendix No.01 to this Circular or the written request for the extension of re-financing loans made according to the Appendix No.02 to this Circular;

b) Specific reports on the following contents: The satisfaction of conditions for re-financing loans, or for the extension of re-financing loans as prescribed in Article 12 of this Circular; solvency problems of credit institutions; explanation of the proposed re-financing loans; measures planned or having been implemented to overcome difficulties in solvency and repayment of re-financing debts;

c) The list of credit dossiers for re-financing loans or the extension of re-financing loans made according to Appendix No.03 to this Circular (02 copies);

d) The data report made according to Appendix No.04, Appendix No.05and Appendix No.06 to this Circular (in case of re-financing loans) or Appendix No.04 and Appendix No.05to this Circular (in case extending re-financing loans).

2. Within 02 working days after receiving valid dossiers of credit institutions in accordance with Clause 1 of this Article, the Monetary Policy Department shall send dossiers to the Banking Inspection and Supervision Agency, the Credit Department of economic sectors, Municipal and provincial State Bank branches where the credit institutions are headquartered for advice ( in case where the municipal and provincial State Bank branches are tasked to inspect and supervise the credit institutions requesting for re-financing loans or for the extension of re-financing loans)

3. Within 05 working days after receiving the written request for opinions of the Monetary Policy Department as prescribed in Clause 2 of this Article, the Banking Inspection and Supervision Agency, the Credit Department of economic sectors, the municipal and provincial State Bank branches where the credit institutions are headquartered (hereinafter referred to as Municipal and provincial State Bank branches) must send written comments to the Department of Monetary Policy on the following contents:

a) The Banking Inspection and Supervision Agency: Assessment on whether or not a credit institution meets the conditions for re-financing loans or extending re-financing loans as specified in Clause 1, Article 12 of this Circular; comments on the request for re-financing loans or extending re-financing loans of credit institutions; and other contents (if any);

b) The Credit Department of economic sectors: opinions on the conditions for re-financing, extension of re-financing of the credit institution as prescribed in Article 12 of this Circular; and comments on the request for re-financing or extending re-financing loans of the credit institution; and other contents (if any), based on reports and dossiers of the credit institution;

c) Municipal and provincial State Bank branches: Assessment on whether or not the credit institution meets the conditions for re-financing loans or extending re-financing loans as specified in Clause 1, Article 12 of this Circular; comments on the request for re-financing loans or extending re-financing loans of credit institutions; and other contents (if any).

4. Within 07 working days after receiving all units’ opinions as prescribed in Clause 3 of this Article, and updated, supplemented or clarified contents of credit institutions or of such units (if any), the Monetary Policy Department shall sum up and submit to the Governor of the State Bank for consideration and decision on the re-financing loans and extension of re-financing loans for credit institutions.

5. Within 20 working days after receiving valid dossier from the credit institutions as prescribed in Clause 1 of this Article, and other updated, supplemented or clarified documents of credit institutions (if any), the State Bank shall issue the Decision on re-financing loans and extension of re-financing loans for credit institutions; in case of rejection, the State Bank send credit institutions a written reply clearly stating the reason.

6. In accordance with the Governor of the State Bank s decision on re-financing loans, extending the re-financing loans for credit institutions and other relevant law provisions, the Director of the State Bank s Transaction Office or Directors of municipal or provincial State Bank branches shall sign contracts on re-financing, disbursing, extending and recovering re-financing debts with credit institutions.

Section 2

RE-FINANCING IN THE FORM OF SUB-LENDING UNDER CREDIT DOSSIERS TO PROVIDE LOANS TP SECTORS AND FIELDS ENCOURAGED FOR DEVELOPMENT

Article 16. Conditions for re-financing loans

The State Bank shall consider and decide to re-finance loans in the form of sub-lending credit dossiers for any credit institutions which satisfy the following conditions:

1. Not in time of: being under special control or being subjected to early intervention or handled for violations in accordance with provisions in Article 11 of this Circular.

2. Complying with prudential ratios as prescribed in Clause 1, Article 130 of the Law on Credit Institutions (amended and supplemented) and guidance of the State Bank for 12 consecutive months prior to the date of the written request for re-financing loans.

3. Committing to not having or having used up all valuable papers on the list of valuable papers used in transactions of the State Bank on the date of application for refinancing loans and committing that the loans in the list of credit documents for refinancing loans fully satisfy the criteria specified in Article 18 of this Circular.

Article 17. Conditions for the extension of refinancing loans

The State Bank shall consider and decide to extend the refinancing loans in the form of sub-lending under credit dossiers for credit institutions that fully meet the following conditions:

1. Having solvency difficulties.

2. Not in time of: being under special control or being subjected to early intervention or handled for violations in accordance with provisions in Article 11 of this Circular.

3. Committing to not having or having used up all valuable papers on the list of valuable papers used in transactions of the State Bank on the date of application for the extension of refinancing loans and committing that the loans in the list of credit documents for the extension of refinancing loans fully satisfy the criteria specified in Article 18 of this Circular.

Article 18. Criteria of loans in the list of credit dossiers

Loans included in the list of credit dossiers prepared by credit institutions for refinancing loans or extending refinancing loans must satisfy the following criteria:

1. To be loans for sectors or fields encouraged for development according to the purpose defined in the credit institution s request for re-financing loans in accordance with the provisions of Appendix No. 01 to this Circular (in case of re-financing loans) or the purpose of the credit institution that is re-financing (in case of the extension of re-financing loan).

2. Standards specified in Clause 1, Article 13 of this Circular.

3. The loans are not used for other purposes.

4. On the date of the written request for refinancing loans or the request for the extension of refinancing loans, the remaining term of the loans must be at least 60 days longer than the requested time for refinancing loans or the extension of refinancing loans.

Article 19. Amount of re-financing loans or extended re-financing loans

1. The amount of money for re-financing loans in form of sub-lending under credit dossiers shall be considered and decided by the State Bank based on the objective of operating monetary policies in each period but shall not exceed 60% of the total outstanding principal of loans in the list of credit dossiers for re-financing loans.

2. The amount of money for extended re-financing loans in form of sub-lending under credit dossiers shall be considered and decided by the State Bank on the basis of the solvency of credit institutions but shall not exceed 60% of the total outstanding principal of loans in the list of credit dossiers for extending re-financing loans.

Article 20. Procedures for considering re-financing loans and the extension of re-financing loans

1. When needing to refinance loans or extend the re-financing loans in the form of sub-lending under credit dossiers, credit institutions shall send 01 set of dossiers to the State Bank (the Monetary Policy Department). In case of requesting the extension of re-financing loans, credit institutions must send dossiers to the State Bank at least 25 working days prior to the due date of debt payment. If the credit institution s dossiers are invalid as prescribed, within 03 working days from the date of receipt of dossiers, the State Bank (the Monetary Policy Department) shall issue a written request to the credit institutions to supplement and complete the dossiers.

(a) The dossier of request for re-financing loans shall include the following documents:

(i) The written request for re-financing loans made according to the Appendix No.01 to this Circular; the loan status of sectors and fields encouraged for development in accordance with the requested purpose for re-financing loans of credit institutions.

(ii) Specific reports on the following contents: The satisfaction of conditions for re-financing loans as prescribed in Article 16 of this Circular; the loan status of sectors and fields encouraged for development in accordance with the requested purpose for re-financing loans of credit institutions.

(iii) The list of credit dossiers for re-financing loans made according to Appendix No.03 to this Circular (02 copies);

(iv) The data report made according to Appendix No.04, Appendix No.05 to this Circular.

b) The dossier of request for the extension of re-financing loans shall include the following documents:

(i) The written request for the extension of re-financing loans made according to the Appendix No.02 to this Circular;

(ii) Specific reports on the following contents: The satisfaction of conditions for the extension of re-financing loans as prescribed in Article 17 of this Circular; solvency problems of credit institutions; measures planned or having been implemented to overcome difficulties in solvency and repayment of re-financing debts;

(iii) The list of credit dossiers for the extension of re-financing loans made according to Appendix No.03 to this Circular (02 copies);

(iv) The data report made according to Appendix No.04, Appendix No.05 to this Circular.

2. Within 03 working days after receiving valid dossiers of credit institutions in accordance with Clause 1 of this Article, the Monetary Policy Department shall send dossiers to the Banking Inspection and Supervision Agency, the Credit Department of economic sectors, Municipal and provincial State Bank branches for advice ( in case where the municipal and provincial State Bank branches are tasked to inspect and supervise the credit institutions requesting for re-financing loans or for the extension of re-financing loans)

3. Within 07 working days after receiving the written request for opinions of the Monetary Policy Department as prescribed in Clause 2 of this Article, the Banking Inspection and Supervision Agency, the Credit Department of economic sectors, the municipal and provincial State Bank branches must send written comments to the Department of Monetary Policy on the following contents:

a) The Banking Inspection and Supervision Agency: Assessment on  whether or not a credit institution meets the conditions specified in Clause 1, Clause 2, Article 16 of this Circular (for credit institutions requesting for re-financing loans); or conditions specified in Clause 1, Clause 2, Article 17 of this Circular (for credit institutions requesting for the extension of re-financing loans ); comments on the request for re-financing loans or extending re-financing loans of credit institutions; and other contents (if any);

b) The Credit Department of economic sectors: Data on outstanding loans of a credit institution on sectors and fields encouraged for  development which the Department of Credit of economic sectors is assigned to monitor and manage; opinions on the conditions for re-financing loans or the extension of re-financing loans of the credit institution under regulations in Article 16 and Article 17 of this Circular based on reports, dossiers of the credit institution; comments on the application for refinancing loans or extending refinancing loans of the credit institution; other content (if any);

c) Municipal and provincial State Bank branches: Assessment on whether or not the credit institution meets the conditions specified in Clause 1, and Clause 2, Article 16 of this Circular (for credit institutions requesting for re-financing loans); or conditions specified in Clause 1, Clause 2, Article 17 of this Circular (for credit institutions requesting for the extension of re-financing loans ); comments on the request for re-financing loans or extending re-financing loans of credit institutions; and other contents (if any).

4. Within 10 working days after receiving all units’ opinions as prescribed in Clause 3 of this Article, and updated, supplemented or clarified contents of credit institutions or of such units (if any), the Monetary Policy Department shall sum up and submit to the Governor of the State Bank for consideration and decision on the re-financing loans and extension of re-financing loans for credit institutions.

5. Within 25 working days after receiving valid dossier from credit institutions as prescribed in Clause 1 of this Article, and other updated, supplemented or clarified documents of credit institutions (if any), the State Bank shall issue the Decision on re-financing loans and extension of re-financing loans for credit institutions; in case of rejection, the State Bank send credit institutions a written reply clearly stating the reason.

6. In accordance with the Governor of the State Bank s decision on re-financing loans, extending the re-financing loans for credit institutions and other relevant law provisions, the Director of the State Bank s Transaction Office or Directors of municipal or provincial State Bank branches shall sign contracts on re-financing, disbursing, extending and recovering re-financing debts with credit institutions.

CHAPTER III

RESPONSIBILITIES OF CREDIT INSTITUTIONS AND UNITS UNDER THE STATE BANK

Article 21. Responsibilities of credit institutions

1. To carry out the responsibilities specified in this Circular and other relevant law provisions.

2. To provide fully, timely and accurately to the State Bank the dossiers and documents on re-financing loans, extending re-financing loans in the form of sub-lending under credit dossiers. To take legal responsibility for the accuracy and legality of the provided dossiers and documents.

3. To take responsibility for meeting the conditions for re-financing loans and extending re-financing loans specified in Clause 2 of Article 12, Clause 3 of Article 16, Clause 3 of Article 17 of this Circular. To take responsibility for the loans in the list of credit dossiers for re-financing loans, extended re-financing loans in accordance with law provisions and the criteria prescribed in this Circular.

4. During the time of application for re-financing loans or the extension of re-financing loans, the credit institutions shall update information and data according to the Appendix 03 to this Circular (if any); and promptly report to the State Bank (the Monetary Policy Department) to stop considering re-financing loans and extending re-financing loans if the credit institutions no longer need re-financing loans or extending re-financing loans.

5. To make right use of re-financing loans to support liquidity; to repay re-financing loans in the form of sub-lending credit dossiers as prescribed in this Circular and Re-financing contracts.

6. During the re-financing in the form of sub-lending under credit dossiers - duration and extension, credit institutions shall:

a) Keep records of, and store in separate files the credit dossiers for re-financing loans and the extension of re-financing loans;

b) Make right use of the loans in the list of credit dossiers for re-financing loans, or extending re-financing loans;

c) Supervise and evaluate the criteria for loans in the list of credit dossiers for re-financing loans and extending re-financing loans. Within 03 working days from the date there are no longer; or the principal outstanding loans decrease; or the loans no longer satisfy the criteria specified in Clauses 1 and Clause 2, Article 13 of this Circular(for refinancing loans under Clause 1, Article 4 of this Circular) or the loans no longer satisfy the criteria specified in Clauses 1 and Clause 2, Article 18 of this Circular (for refinancing loans under Clause 2, Article 4 of this Circular), credit institutions must replace, supplement qualified loans to ensure the total outstanding principal of the loans after the replacement and supplement is not lower than the total outstanding principal of the loans in the list of credit dossiers attached to the Decision on refinancing and the Decision on the extension of refinancing of the Governor of the State Bank, and at the same time, report to the State Bank (the Banking Inspection and Supervise Agency, the Monetary Policy Department, the Credit Department of economic sectors, the State Bank s Transaction Office or municipal and provincial State Bank branches where credit institutions receive disbursements for refinancing).

7. To send written report - on weekly basis, within the first 2 working days of the week immediately after the reporting week - directly or by post to the State Bank (the Banking Inspection and Supervision Agency, municipal or provincial State Bank branches taking responsibility for inspecting and supervising credit institutions with re-financing loans) on the use re-financing loans to support liquidity in accordance with the Appendix No. 08 to this Circular, until the re-financing loans are used up.

Article 22. Responsibilities of units under the State Bank

1. The Monetary Policy Department:

a) To act as the focal point for submitting documents to the Governor of the State Bank for consideration and decision on re-financing loans or extending re-financing loans in the form of sub-lending under credit dossiers in accordance with provisions of this Circular;

b) To act as the focal point for reporting to the Governor of the State Bank for the handling of problems arising in the implementation of re-financing loans in the form of sub-lending under credit dossiers;

c) To aggregate data on re-financing loans in the form of sub-lending under credit dossiers at the State Bank s Transaction Office, municipal and provincial State Bank branches and report to the Governor of the State Bank within 05 days working days after receiving of a complete report from the State Bank s Transaction Office, municipal and provincial State Bank branches until there is no outstanding loan and there is no change in the re-financing in the form of sub-lending under credit dossiers.

2. The Banking Inspection and Supervision Agency

a) To make remarks on the re-financing loans or the extension of re-financing loans in the form of sub-lending under credit dossiers in accordance with provisions of this Circular;

b) To act as the focal point to report to the Governor of the State Bank for consideration and decision on the implementation of measures prescribed at Point c, Clause 4, Article 8 of this Circular;

c) In case of receiving a written notice from competent agencies, or from the municipal or provincial State Bank branches under the provisions at Point dd, Clause 5 of this Article or through the inspection, supervision detecting that credit institutions violate provisions defined in Clause 1 and Clause 2, Article 11 of this Circular, the Banking Inspection and Supervision agency shall act as a focal point to report to the Governor of the State Bank and send a written notice of violations to credit institutions;  at the same time, send a written notice of violations of the credit institutions and handling measures of the State Bank in accordance with this Circular to the Department of Monetary Policy, the Credit Department of economic sectors, the State Bank’s Transaction Office and municipal and provincial State Bank branches;

d) To supervise, inspect and handle violations within its competence for credit institutions in the implementation of the provisions of this Circular.

3. The Credit Department of economic sectors: to make remarks on the re-financing loans or the extension of re-financing loans in the form of sub-lending under credit dossiers as prescribed in this Circular;

4. The State Bank’s Transaction Office

a) To sign re-financing contracts with fundamental contents as prescribed in the Appendix No.07 to this Circular; to disburse, extend and recover re-financing debts under provisions of this Circular, the Decision of the State Bank on re-financing loans or extending re-financing loans in the form of sub-lending under credit dossiers for credit institutions and relevant law provisions;

b) To guide credit institutions to sign contracts for re-financing, disbursement and recovery of re-financing debts in accordance with the handling procedure on the professional software system of the State Bank;

c) To apply handling measures to credit institutions as prescribed at Point a and Point b, Clause 4, Article 8 of this Circular;

d) To send a written report on the re-financing data according to the Appendix No.9 to this Circular - to the Banking Inspection and Supervision Agency, the Monetary Policy Department, the Credit Department of economic sectors - within the first 7 working days of the following month of the month in which there are outstanding loans or there arises changes in re-financing in the form of sub-lending under credit dossiers at the State Bank s Transaction Office;

dd) To convert outstanding interest of re-financing loans into outstanding interest of special loans as prescribed in Clause 3 Article 23 of this Circular.

5. Municipal and provincial State Bank branches

a) To make remarks on re-financing loans or extending re-financing loans in the form of sub-lending under credit dossiers as prescribed in this Circular (for municipal and provincial State Bank branches taking responsibilities for inspecting and supervising credit institutions applying for re-financing loans and extending re-financing loans);

b) To sign re-financing contracts with fundamental contents as prescribed in the Appendix No. 07 to this Circular; to disburse, extend and recover re-financing debts under provisions of this Circular, the Decision of the State Bank on re-financing loans or extending re-financing loans in the form of sub-lending under credit dossiers for credit institutions and other relevant law provisions;

c) To apply handling measures to credit institutions as prescribed at Point a and Point b, Clause 4, Article 8 of this Circular;

d) To inspect, supervise and handle violations within their competence for credit institutions in the implementation of the provisions of this Circular (for municipal and provincial State Bank branches taking responsibilities for inspecting and supervising credit institutions with re-financing loans);

dd) To send a written notice to the Banking Inspection and Supervision Agency in case through inspection and supervision detecting that credit institutions violate provisions of Clauses 1 and Clause 2, Article 11 of this Circular (for municipal and provincial State Bank branches taking responsibilities for inspecting and supervising credit institutions with re-financing loans);

e) To send a written report on the re-financing data according to the Appendix No.9 to this Circular - to the Banking Inspection and Supervision Agency, the Monetary Policy Department, the Credit Department of economic sectors - within the first 7 working days of the following month of the month in which there are outstanding loans or there arises changes in re-financing in the form of sub-lending under credit dossiers at the municipal and provincial State Bank branches;

6. The Financing – Accounting Department: To provide guidance on accounting related to the re-financing in the form of sub-lending under credit dossiers.

7. The Department of Information Technology:

a) To act as the focal point and to coordinate with the State Bank s Transaction Office and relevant units to develop software programs, install software programs and ensure that computer network infrastructure for re-financing operations in the form of sub-lending under credit dossiers operate stably, smoothly, safely and confidentially;

b) To provide guidance for credit institutions to set up network connections with the State Bank to conduct re-financing transactions in the form of sub-lending under credit dossiers;

c) To provide guidance on the issuance and revocation of access keys and electronic signature keys to credit institutions.

CHAPTER IV

IMPLEMENTATION PROVISIONS

Article 23. Effect

1. This Circular takes effect from January 18, 2020.

2. To annul the Circular No.15/2012/TT-NHNN dated May 04, 2012 of the Governor of the State Bank of Vietnam, promulgating the re-financing in the form of sub-lending under credit dossiers of the State Bank of Vietnam for credit institutions.

3. From the effective date of this Circular, refinancing outstanding loans in the form of sub-lending under credit dossiers for credit institutions - which are under special control before the effective date of the Law on Amending and Supplementing a number of Articles of the Law on Credit Institutions No. 47/2010/QH12 – shall be converted into outstanding interest of special loans.

4. Refinancing loans in the form of sub-lending under credit dossiers which still have loanoutstanding balance tillthe effective date of this Circular shall continue to comply with the refinancing decision and refinancing contract signed. The amendment and supplementation of refinancing decisions and refinancing contracts in the form of sub-lending under credit dossiers shallcomply with regulationsofthis Circular.

Article 24. Implementation

The Chief of Office, the Director of the Monetary Policy Department, Heads of units under the State Bank, Directors of municipal and provincial State Bank branches,Presidents of the Member Assembly, Presidents of the Board of Directors and General Director (Director) of credit institutions are responsible for the implementation of this Circular./.

For the Governor

Deputy Governor

Nguyen Thi Hong