Vietnamese
This policy is applicable from October 27, 2021 via the Circular No. 08/2021/TT-NHNN which is issued by the State Bank of Vietnam on grant of special loans to credit institutions placed under special control.
In particulars, the SBV shall consider granting special loans at the lowest preferential interest rate of 0% to credit institutions placed under special control with funding sources from the performance of the central bank’s function in terms of money issuance in the cases:
+ To support the recovery of commercial banks, cooperative banks, finance companies or micro-finance institutions under their approved recovery plan;
+ To support the recovery of commercial banks under an approved mandatory transfer plan.
For granting special loans to support the liquidity of credit institutions when such credit institutions are in danger of becoming insolvent or have become insolvent, threatening the stability of the banking system while the credit institutions are placed under special control, even if the credit institutions are implementing an approved restructuring plan or transfer plan; the interest rate charged on the overdue principal of a special loan shall be equal to 130% of the interest rate charged on due repayment determined on the date when the debt becomes delinquent.
