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

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 objectiveforce majeurecircumstance:

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;

c/ The credit institution may provide the client with a new loan for production and business recovery, if the client has a feasible production and business project or plan.”

4. To add the following Article 4a:

“Article 4a. Grace period

không phải báo cáo.”

5. To amend and supplement Article 5 as follows:

“Article 5. Dossiers, order and procedures of request of debt freezing

Dossiers, order and procedures for request of debt freezing must comply with Clause 3, Article 12 of Decree No. 55/2015/ND-CP (as supplemented under Clause 6, Article 1 of Decree No. 116/2018/ND-CP).”

6.To amend Clauses 2, 3,  4 and 5 of, and add Clause 6 to, Article 7 as follows:

“2. To issue the following guidance for uniform application within the system of credit institutions:

- Provision of loans for association activities in agricultural production under Clause 4, Article 14 of Decree No. 55/2015/ND-CP (as supplemented under Clause 7, Article 1 of Decree No. 116/2018/ND-CP);

- Dossiers, order and procedures for request of debt freezing in accordance with Clause 3, Article 12 of Decree No. 55/2015/ND-CP (as supplemented under Clause 6, Article 1 of Decree No. 116/2018/ND-CP). Credit institutions shall assume the responsibility for the accuracy, lawfulness and validity of dossiers, data and eligibility of clients requesting for debt freezing.

3. To proactively coordinate with local administrations at all levels and socio-political organizations in providing and disseminating information on credit policies to serve agricultural and rural development under Decree No. 55/2015/ND-CP, Decree No. 116/2018/ND-CP and this Circular.

4. To identify and clearly state purposes of agricultural and rural development loans at credit contracts and separately monitor dossiers of loans provided for agricultural and rural development.

5. To report to the State Bank of Vietnam the balance of credit granted for agricultural and rural development according to regulations on statistical reporting applicable to credit institutions and foreign bank branches; quarterly (before the 15^thof the first month of the following quarter) to make reports on debts provided for agricultural and rural development which are rescheduled without changing category according to the form attached to this Circular.

6. To conduct inspection and supervision of debts rescheduled without changing category within the system so as to ensure accurate reflection of the status of such debts.”

7. To amend and supplementPoint a, Clause 1 and Point b, Clause 4 of Article 8 as follows:

“a/ To advise the State Bank Governor in coordinating with the Ministry of Finance in handling requests of debt rescheduling due to objectiveforce majeurecircumstances, natural disasters or  widespread epidemics under Clauses 2, 3 and 4, Article 12 of Decree No. 55/2015/ND-CP (as amended and supplemented under Clause 6, Article 1 of Decree No. 116/2018/ND-CP);”.

“b/ To assume the prime responsibility for, and coordinate with provincial-level Departments of Finance in, inspecting, confirming, examining and synthesizing dossiers, data, types of clients requesting debt rescheduling of credit institutions in order to advise provincial-level People’s Committees in  making reports to the Prime Minister, the State Bank of Vietnam and the Ministry of Finance under Clause 3, Article 12 of Decree No. 55/2015/ND-CP (as supplemented under Clause 6, Article 1 of Decree No. 116/2018/ND-CP);”.

Article 2.To annual Point d, Clause 4, Article 8 of, and Forms 01 thru 06 promulgated together with, Circular No. 10/2015/TT-NHNN.

Article 3.Transitional provision

For a credit contract signed before the effective date of this Circular, the concerned credit institution and client may continue performing the signed  contract’s terms which are conformable with regulations effective at the time of signing or revise the credit contract to be conformable with this Circular.

Article 4.Organization of implementation

The Chief of the Office, the Director of the  Credit Department of Economic Sectors and heads of units under the State Bank of Vietnam, directors of the State Bank of Vietnam’s provincial-level branches, and chairpersons of Boards of Directors or Members’ Councils, and directors general (directors) of credit institutions and foreign bank branches shall organize the implementation of this Circular.

Article 5.Effect

This Circular takes effect on December 10, 2018.-

For The State Bank Governor
Deputy Governor
Nguyen Dong Tien