VietnameseOfficial Dispatch No. 1183/NHNN-TCKT dated February 23, 2009 of the State Bank of Vietnam providing guidance on making accounting of interest rate support in 2009
ATTRIBUTE
Official Dispatch No. 1183/NHNN-TCKT dated February 23, 2009 of the State Bank of Vietnam providing guidance on making accounting of interest rate support in 2009
| Issuing body: | State Bank of Vietnam | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 1183/NHNN-TCKT | Signer: | Pham Hoang Duc |
| Type: | Official Dispatch | Expiry date: | Updating |
| Issuing date: | 23/02/2009 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Finance - Banking |
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THE STATE BANK OF VIETNAM ------- | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness -------------- |
No. 1183/NHNN-TCKT Ref: providing guidance on making accounting of interest rate support in 2009 | Hanoi, February 23, 2009 |
To: | - State – owned commercial banks - Joint stock commercial banks - Joint – venture banks - Foreign bank branches operating in Vietnam - 100% foreign – owned banks - Central People’s Credit Fund |
Pursuant to the Circular No. 02/2009/TT-NHNN dated 3 February 2009 of the State Bank of Vietnam providing in details for the implementation of giving interest rate support to organizations and individuals borrowing capitals from banks for business and production (Circular No. 02/2009/TT-NHNN);
Pursuant to the Accounts system of Credit institutions (CIs) issued in conjunction with the Decision No. 479/2004/QD-NHNN dated 29 April 2004 of the Governor of the State Bank and Decisions on the amendment, supplement of Accounts system of CIs;
In order to unify the process of settlement and accounting of interest rate support; facilitate the preparation of reports, final settlement and examination, auditing of loans entitled to interest rate support, the State Bank of Vietnam (SBV) provides guidance to Commercial banks which are authorized to provide loans with interest rate support in accordance with provisions of the Circular 02/2009/TT-NHNN (hereinafter referred to as Commercial banks) on making accounting of interest rate support as follows:
I. GENERAL PRINCIPLES
1. The commercial bank shall perform the calculation and accounting of loan interests for loans entitled to interest rate support in accordance with applicable provisions on method of calculation and accounting of interests collection, payment of the SBV and CIs.
2. Once collecting loan interests, Commercial banks shall deduct immediately interest amount payable to borrowers equal to loan interest amount to be given interest rate support in accordance with applicable provisions.
3. The commercial bank shall be obliged to have printable list sheet or data base in order to serve the preparation of reporting forms in accordance with provisions of the Circular 02/2009/TT-NHNN, to make final settlement of interest rate support amount and carry out examination, auditing, supervision in accordance with applicable provisions. The list sheet or data base must contain following factors:
- Name of borrower;
- Credit contract (number and date);
- Loan term entitled to interest rate support;
- Loan interest rate as stated in Credit contract;
- Outstanding loan entitled to interest rate support;
- Loan interest amount payable by the customer in accordance with the interest rate provided for in Credit contract, arising in month and accumulated until reporting time;
- Loan interest amount paid by the customer (deduction of interest rate support was made already), arising in month and accumulated until reporting time;
- Loan interest amount to be given interest rate support (unrealized and realized amount), arising in month and accumulated until reporting time;
- Other factors in accordance with guidance of the SBV (if any) and management request of the Commercial bank.
4. For amount used for giving interest rate support contrary to applicable provisions, the Commercial bank must immediately revoke for returning to the State.
5. On a monthly basis, on the 10th of the month following the reporting month at the latest, the Commercial bank shall be obliged to send the “List sheet of balances of receivable, payable accounts related to interest rate support” (form as in appendix 01 attached to this Official Dispatch) to the SBV (Monetary Policy Department and Finance – Accounting Department) for transfer of interest rate support amount.
6. The commercial bank shall be required to issue internal provisions (guidance) on making accounting of interest rate support for consistent implementation in the system and send them to the SBV (Banking inspectorate and Finance – Accounting Department) for supervision. The commercial bank shall be fully responsible for the accuracy, honesty, timeliness and sufficiency of accounting data related to the implementation of interest rate support and keeping, preservation of accounting documents on loans entitled to interest rate support in accordance with applicable provisions.
II. ACCOUNTS TO BE USED
1. Depending on specific characteristics of technology and management application, the Commercial bank shall open general account of level 4, level 5 or appropriate detailed account of category 2 – Credit activity and account “Receivable interests from Vietnamese Dong loans” or apply appropriate management system ensuring the accuracy, reliability in order to separately supervise loan principals and loan interests entitled to interest rate support in accordance with the Circular 02/2009/TT-NHNN.
2. The commercial bank shall open 2 detailed accounts belonging to the account 3539 “Amounts pending for payment by State bank budget” for particular accounting, supervision of loan interest entitled to interest rate support, which has been made deduction to the borrower (Detailed: Receivables of realized interest rate support) and loan interest entitled to interest rate support pending for deduction to borrower (Detailed: Receivables of unrealized interest rate support).
3. Upon receiving money for giving interest rate support, the Commercial bank shall account it into the account 4599 “Other items pending for payment” (Detailed: Receiving money for giving interest rate support).
4. For interest rate supports which were given contrary to applicable provisions, upon withdrawing them, the Commercial bank shall account separately into the account 4539 “Other payables” (Detailed: recovered amount of interest rate for repayment to the State).
5. Upon making the Balance sheet, the Commercial bank shall set off balances of the account 3539 “Amounts pending for payment by the State budget” (Detailed: receivables of realized interest rate support) with the balance of account 4599 “Other items pending for payment” (Detailed: Receiving money for giving interest rate support).
III. REGARDING THE ACCOUNTING
1. Accounting of receivable loan interest of customer
a) At the time of calculation and accounting of receivable loan interest, based on the document of receivable interest calculation, to make following accounting entries:
To Debit against account 3941 – Receivable interest from Vietnamese Dong loan (Detailed: Receivable interest from loan entitled to interest rate support) | Interest amount receivable from customer (interest amount deducted for interest rate support excluded) |
To Debit against account 3539 – Items pending for payment by State budget (Detailed: Receivable of unrealized interest rate support) | Interest amount of which interest rate is supported, pending for deduction for customer |
To Credit to account 702 – Collection of loan interest | Total interest amount receivable from customer in accordance with interest rate stated in Credit contract |
b) For loans entitled to interest rate support, which are being accounted in group 1, and were accounted as estimated interest income by the Commercial bank, but not yet collected from customer and carried over to loan group 2, 3, 4 and 5:
To Debit against account 809 – Other expenses | Total interest amount receivable from customer in accordance with interest rate stated in Credit contract |
To Credit to account 3941 - Receivable interest from Vietnamese Dong loan (Detailed: Receivable interest from loan with interest rate support) | Interest amount receivable from customer (interest amount deducted for interest rate support excluded) |
To Credit to account 3539 – Items pending for payment by State budget (Detailed: Receivable of unrealized interest rate support) | Interest amount of which interest rate is supported, pending for deduction for customer |
At the same time, to record into account 941 “Uncollected loan interest in Vietnamese dong”, to open sub-account for separately monitoring receivable interests of customer (interest amount deducted for interest rate support excluded); and unrealized interest amount of which interest rate is supported.
2. Upon collecting loan interest, based on document of interest collection and certificate of interest rate support which are fully confirmed by customer and the lending bank in accordance with applicable provisions, to make following accounting entries:
a) In case of collecting interest in accordance with estimated revenue method:
To Debit against appropriate account (cash, deposit of customer) | Interest amount paid by customer (of which interest rate support amount has been deducted) |
To Credit to account 3941 - Receivable interest from Vietnamese dong loan (Detailed: Receivable interest from loan entitled to interest rate support) |
At the same time, to deduct immediately loan interest to be given interest rate support for borrower, to make accounting entries as follows:
To Debit against account 3539 – Items pending for payment by State budget (Detailed: Receivable of realized interest rate support) | Interest amount already deducted for interest rate support |
To Credit to account 3539 – Items pending for payment by State budget (Detailed: Receivable of unrealized interest rate support) |
b) In case of collecting interest in accordance with real revenue method:
To Debit against appropriate account (cash, deposit of customer) | Interest amount paid by customer (of which interest rate support amount has been deducted) |
To Debit against account 3539 – Items pending for payment by State budget (Detailed: Receivable of realized interest rate support) | Interest amount which the customer is given interest rate support |
To Credit to account 702 – Collection of loan interest | Total interest amount to be received in accordance with interest rate stated in Credit contract |
3. On a monthly basis, upon receiving transfer of interest rate support amount, to account as follows:
To Debit against deposit account at the SBV
To Credit to account 4599 – Other accounts pending for payment
(Detailed: Receiving money for giving interest rate support)
4. To revoke and repay amount already used for interest rate support contrary to provisions of applicable laws:
a) To revoke the amount already used for interest rate support contrary to applicable provisions:
- Where the cause belongs to the customer who failed to use loan capital for the right purpose as provided for as in the Circular No. 02/2009/TT-NHNN: The commercial bank shall be obliged to deduct immediately deposit account of customer or request customer to deposit cash for revoking loan interest amount of which interest rate was supported before, then, to account as follows:
To Debit against appropriate account (cash, deposit of customer)
To Credit to account 4539 – Other payables
(Detailed: Interest rate support amount already revoked for return to the State)
The commercial bank shall open a detailed book (off balance sheet) for accounting uncollected loan interest amount of which interest rate was supported and apply determined measures in accordance with provisions of applicable laws (such as recovery of loan principals, overdue interest) for recourse.
- Where the cause belongs to the Commercial bank which failed to provide loans to right subjects as provided for in the Circular No. 02/2009/TT-NHNN, then responsibility shall be imputed to related units and individuals and make accounting as follows:
To Debit against account 89 – Other expenses or appropriate internal account
To Credit to account 4539 – Other payables
(Detailed: Interest rate support amount already revoked for return to the State)
b) To return interest rate support amount which do not comply with provisions:
Upon returning interest rate support amount to the State, to account as follows:
To Debit against account 4539 – Other payables
(Detailed: Interest rate support amount already revoked for return to the State)
To Credit to deposit account at the SBV or to make accounting in accordance with the guidance stated in point 5 of this Official Dispatch (if permitted).
5. To account the interest rate support amount:
Pursuant to the Decision or written document of competent levels of the SBV approving the accounting of interest rate support amount; and upon receiving the transfer of interest rate support amount (the remaining), after reconciliation, the Commercial bank shall make final settlement of balances of account 4599 and account 3539 (mentioned above), make accounting entry as follows:
To Debit against deposit account at the SBV | Interest rate support amount (remaining) |
To Debit to account 4599 – Other amounts pending for payment (Detailed: Receiving money for giving interest rate support) | Total interest rate support amount received in the year |
To Debit against account 4539 – Other payables (Detailed: Interest rate support amount already revoked for return to the State) | Total interest rate support amount, which was implemented contrary to applicable provisions, already revoked (if any) |
To Credit to account 3539 – Items pending for payment by State budget (Detailed: Receivable of realized interest rate support) | Total interest rate support amount to be approved for final settlement |
After making final settlement of the interest rate support amount, if any receivables, payables related to interest rate support arise, the Commercial bank shall process in accordance with following principles:
- For payables (interest rate support amount, which was implemented contrary to applicable provisions, already revoked for return to the State), the Commercial bank shall deal with in accordance with the guidance stated in point 4 above and transfer to the SBV on the 25th of the last month of a quarter.
- For receivables from interest rate support (if any): the Commercial bank shall account separately and deal with in accordance with the guidance of competent levels of the SBV.
During the process of implementation, any inquiry that may arise should be reflected by the Commercial banks to the SBV (Finance – Accounting Department) for timely guidance of settlement.
AUTHORIZED BY THE GOVERNOR OF THE STATE BANK DIRECTOR OF FINANCE – ACCOUNTING DEPARTMENT Pham Hoang Duc |
APPENDIX 01
(Attached to the Official Dispatch No. 1183/NHNN-TCKT dated 23 February 2009 of the State Bank
NAME OF COMMERCIAL BANK |
LIST SHEET OF BALANCES OF RECEIVABLE, PAYABLE ACCOUNTS RELATED TO INTEREST RATE SUPPORT
Month... 2009
Month... 2009
Unit:...
Ordinal number | Norm | Balance | ||||
Debit | Credit | |||||
I | Receivables of interest rate support | |||||
1 | Account 3539 (Detailed: receivables of unrealized interest rate support) | |||||
2 | Account 3539 (Detailed: receivables of realized interest rate support) | |||||
Total (I): | ||||||
II | Payables of interest rate support | |||||
1 | Account 4599 (Detailed: Receiving money for giving interest rate support) | |||||
2 | Account 4539 (Detailed: Interest rate support amount already revoked for return to the State) | |||||
Total (II): | ||||||
III | Account 941 (Detailed: Unrealized loan amount entitled to interest rate support, being supervised off balance sheet) | |||||
...date... | ||||||
DRAWER (Sign and clearly state full name) | CHIEF ACCOUNTANT (Sign and clearly state full name) | HEAD OF INTERNAL AUDITING DIVISION (Sign and clearly state full name) | GENERAL MANAGER (Sign and clearly state full name, seal) | |||
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