THE STATE BANK OF VIETNAM
Circular No. 25/2018/TT-NHNN dated October 24, 2018 of the State Bank of Vietnam on amending and supplementing a number of articles of the State Bank Governor’s Circular No. 10/2015/TT-NHNN of July 22, 2015, guiding the implementation of a number of contents of the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development[1]
Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;
Pursuant to the June 16, 2010 Law on Credit Institutions and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development;
Pursuant to the Government’s Decree No. 116/2018/ND-CP of September 7, 2018, amending and supplementing a number of articles of the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development;
Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the proposal of the Director of Credit Department of Economic Sectors;
The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of the State Bank Governor’s Circular No. 10/2015/TT-NHNN of July 22, 2015, guiding the implementation of a number of contents of the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development.
Article 1. To amend and supplement a number of articles of the State Bank Governor’s Circular No. 10/2015/TT-NHNN of July 22, 2015, guiding the implementation of a number of contents of the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development (below referred to as Circular No. 10/2015/TT-NHNN)
1. To amend and supplement Article 1 as follows:
“Article 1. Scope of regulation
This Circular prescribes support policies for funding sources for loan provision; debt rescheduling, provision of new loans; dossiers, order and procedures of request of debt freezing; grace period; and the maximum deduction rate for collaterals of agricultural and rural development loans provided under the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agricultural and rural development (below referred to as Decree No. 55/2015/ND-CP) and Decree No. 116/2018/ND-CP of September 7, 2018, amending and supplementing a number of articles of Decree No. 55/2015/ND-CP (below referred to as Decree No. 116/2018/ND-CP).”
2. To amend and supplement Clause 2, Article 2 as follows:
“Borrowers prescribed in Clauses 2 and 3, Article 2 of Decree No. 55/2015/ND-CP (as amended and supplemented under Clause 1, Article 1 of Decree No. 116/2018/ND-CP).”
3. To amend and supplement Clause 1, Article 4 as follows:
“1. In case a client prescribed in Clause 1, Article 12, Clause 3, Article 14 or Clause 3, Article 15 of Decree No. 55/2015/ND-CP cannot repay its/his/her debt due to an objective force majeure circumstance:
a/ The concerned credit institution may consider rescheduling the debt payment deadline while keeping the debt category unchanged at the request of the client and on the basis of the credit institution’s assessment of the client’s debt repayment capacity. The period of rescheduling the debt while its category is kept unchanged must comply with the client’s production and business cycle but the total period of debt rescheduling must not exceed the initial loan term under the signed credit contract;
b/ Upon expiration of the period of rescheduling the debt and keeping its category unchanged, if the client still fails to repay the debt on schedule and is ineligible for rescheduling the debt and keeping its category unchanged, the credit institution shall classify the debt under the State Bank of Vietnam’s current regulations on classification of credits, rates and methods of deduction for making up risk provisions, and use of provisions for handling risks in operations of credit institutions and foreign bank branches;
[1] Công Báo Nos 1025-1026 (6/11/2018)
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