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

Promulgating re-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.