Thông tư 32/2019/TT-NHNN

CIRCULAR

AMENDMENTS TO SOME ARTICLES OF CIRCULAR NO. 19/2013/TT-NHNN DATED SEPTEMBER 06, 2013 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM ON PURCHASE, SALE AND SETTLEMENT OF BAD DEBTS OF VIETNAM ASSET MANAGEMENT COMPANY

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 amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Enterprises dated November 26, 2014;

Pursuant to the Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly on pilot settlement of bad debts of credit institutions;

Pursuant to the Government’s Decree No. 53/2013/ND-CP dated May 18, 2013 on the establishment, organization and operation of Vietnam Asset Management Company; the Government’s Decree No. 34/2015/ND-CP dated March 31, 2015 and the Government's Decree No. 18/2016/ND-CP dated March 18, 2016 on amendments to the Government’s Decree No. 53/2013/ND-CP ;

Pursuant to the Government’s Decree 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the request of the Head of the Banking Supervision Agency;  

The Governor of the State Bank of Vietnam promulgates a Circular on amendments to some Articles of Circular No. 19/2013/TT-NHNN dated September 06, 2013 of the Governor of the State bank of Vietnam on purchase, sale, and settlement of bad debts of Vietnam Asset Management Company (VAMC).

Article 1. Amendments to some Articles of Circular No. 19/2013/TT-NHNN dated September 06, 2013 of the Governor of the State Bank of Vietnam on purchase, sale and settlement of bad debts of VAMC (hereinafter referred to as the “Circular No. 19/2013/TT-NHNN”)

1. Clauses 2, 3 and 4 Article 3 are amended as follows:

“2. Bad debt restructuring refers to the installment revision or extension of repayment period, the reduction or waiving of a portion or the entire of overdue interests, late fees or overdue fines, or the adjustment of the interest rate of a bad debt.     

3. Installment revision refers to an agreement to lengthen the agreed period for making an installment, including principal and/or interest, in part or in full (including cases in which there is no change in the number of the agreed installments) while the agreed repayment period specified in the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds, and the due date of the last installment are kept unchanged.

4. Extension of repayment period refers to an agreement to extend the repayment period of principal and/or interest in excess of the agreed repayment period specified in the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds.”

2. Article 4a is added following Article 4:

“Article 4a.   Management of foreign currencies when purchasing and selling bad debts of VAMC

1. VAMC, debt-selling credit institutions, purchasers of debts from VAMC, borrowers and other relevant parties have the responsibility to comply with law regulations on restricted use of foreign currencies within the territory of Vietnam when purchasing and selling bad debts, and collecting purchased debts.

2. When purchasing, selling debts with VAMC:

a) The debt purchaser shall use a checking account in VND opened at a commercial bank or foreign bank branch in Vietnam to pay VAMC for the purchased debts and relevant costs under the debt purchase contract if the currency used for purchasing debts is VND;

b) The debt purchaser who is a non-resident shall use a checking account in a foreign currency opened at a commercial bank or foreign bank branch licensed to do foreign exchange activities in Vietnam or a foreign currency account opened overseas to pay VAMC for the purchased debts and relevant costs under the debt purchase contract if the currency used for purchasing debts is a foreign currency.

3. When collecting debts purchased from VAMC, the collected debts must be transferred to 01 (one) checking account in VND or 01 (one) checking account in a foreign currency (for the debts collected in foreign currency) opened by the debt purchaser at a commercial bank or foreign bank branch licensed to do foreign exchange activities within the territory of Vietnam.

4. When purchasing or selling a debt derived from overseas lending or repayment for a non-resident principal debtor:

a) The debt seller (VAMC or the credit institution that sells the debt to VAMC) shall register a change to the overseas loan and collection of guaranteed debts according to applicable regulations on foreign currency management applied to overseas lending and collection of guaranteed debts for non-resident principal debtors;

b) The debt purchaser (VAMC or the non-resident that purchases the debt from VAMC) shall register a plan for debt collection according to applicable regulations on foreign currency management applied to collection of foreign debts derived from purchase or sale of debts.”

3. Clause 2 Article 6 is amended as follows:

“2. When VAMC uses special bonds to pay a credit institution for the purchased bad debt in a foreign currency, the exchange rate for converting the foreign currency into VND is as follows:

a) If the purchased bad debt is in USD, the official exchange rate announced by SBV at the time of conclusion of the debt purchase contract shall apply;

b) If the purchased bad debt is in a foreign currency other than USD, the applied exchange rate shall be the cross rate between that currency and VND which is calculated from the exchange rate between USD and VND, that is also the official exchange rate announced by SBV, and the exchange rate between that currency and USD posted on Reuters or Bloomberg display or on other means, if the exchange rate of that currency is available on neither Reuters nor Bloomberg display, at the time of conclusion of the debt purchase contract.”

4. Article 11 is amended as follows:

“Article 11. Terms and conditions of bonds and special bonds

1. Face value of bonds and special bonds

a) The face value of a bond is equal to the purchase price of the bad debt. The face value of a special bond equals the purchase price of the bad debt according to Clause 1 Article 14 of Decree No. 53/2013/ND-CP ;

b) If the purchased bad debt is a syndicated loan, the face value of bonds/special bonds issued to each of the credit institutions that provide the syndicated loan will be:

(i) The book value of outstanding principal of the bad debt after deducting the unused reserve for such bad debt which is monitored by the credit institution that provides the syndicated loan in case VAMC purchases the bad debt with special bonds;

(ii) The purchase price of bad debt determined according to the holding of each of the credit institutions that provide the syndicated loan if VAMC purchases bad debts at market prices with bonds.

2. Bonds and special bonds are issued in VND. Bonds may be transferred between SBV and credit institutions and among credit institutions.  Special bonds may not be transferred.

3. Bonds and special bonds are issued in the form of book entries or identified electronic data or registered certificates.  VAMC shall decide the forms of bonds and special bonds.

4. The interest rate of bonds and special bonds is 0%.

5. Duration of bonds and special bonds:

a) VAMC and the debt-selling credit institution shall reach an agreement on the duration of bonds, which is at least 01 year. If the collected debt is not sufficient to pay the bonds when they mature, VAMC shall extend the duration of bonds for up to 03 more years. The extension of the duration of bonds for more than 03 years requires the consent by the entity that owns the bonds.  VAMC is not allowed to extend the duration of bonds used for performing open market operations;

b) The maximum duration of special bonds is 05 years. In case special bonds are issued to purchase bad debts of credit institutions that are undergoing restructuring or having financial difficulties, the maximum duration of special bonds shall be 10 years.

6. Bonds and special bonds must be deposited at SBV in accordance with SBV’s regulations on depositing of financial instruments, and used in refinancing transactions with SBV.  Bonds are used for open market operations as prescribed by law.

7. Bonds and special bonds must be deposited at SBV free of charge.

8. Credit institutions holding bonds are not required to make provisions for bond-related risks.”

5. Clause 1 Article 16 is amended as follows:

“1. A bad debt shall be purchased by VAMC with special bonds when it meets all of the following conditions:

a) It is a bad debt as defined in Clause 7a Article 3 hereof;

b) There is the collateral for the bad debt;

c) The bad debt and its collateral must be lawful and supported by valid documents, and meet the following conditions: 

(i) The credit contract or loan agreement, the entrustment contract for credit extension, the debt purchase contract, corporate bond purchase contract or entrustment contract for purchasing corporate bonds or the guarantee contract must specify rights of the creditor that is the credit institution, and repayment responsibility and obligations of borrowers, guarantors and debt payers towards the credit institution;

(ii) The bad debt is not yet used for guaranteeing the fulfillment of obligations of the credit institution;  

(iii) The collateral for the bad debt is not in any dispute case which has been accepted but is not yet settled or is under the consideration by a competent court; is not subject to any interim injunctions applied by the Court; is not seized or subject to any security measures for judgment enforcement as prescribed by law at the time of purchasing or selling the debt.

Pursuant to relevant laws, VAMC shall determine whether the bad debt and its collateral are lawful and supported by valid documents or not.

d) The borrower still exists;

dd) The book value of outstanding principal of the bad debt or the bad debts of a borrower or a group of borrowers as prescribed in Clause 4 Article 8 hereof at the time of selling the debt is not lower than VND 3 billion, for a group of borrowers and borrowers that are organizations, or VND 1 billion, for borrowers that are individuals, or another amount decided by SBV's Governor."

6. Point d Clause 1 Article 17 is amended as follows:

“d) The copy of the credit contract or loan agreement, the entrustment contract for credit extension, the debt purchase contract, corporate bond purchase contract or entrustment contract for purchasing corporate bonds or the guarantee contract bearing the certification of the legal representative of the debt-selling credit institution;"

7. Article 27 is amended as follows:

“Article 27. Principles for restructuring of bad debts purchased

1. The bad debt restructuring must conform to the Decree No. 53/2013/ND-CP , this Circular and terms and conditions of the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds or debt purchase contract.

2. VAMC shall consider, decide, and take responsibility for restructuring of the bad debts purchased at market prices according to borrowers’ written request.

3. VAMC shall carry out the restructuring of the bad debts purchased with special bonds according to borrowers’ written request and this Circular.

4. It is prohibited to take advantage of bad debt restructuring for illegal self-seeking purposes.”

8. Article 30 is amended as follows:

“Article 30. Measures for rescheduling bad debts purchased with special bonds

1. VAMC shall consider rescheduling the debts in the form of installment revision or extension of repayment period when the borrower meets the conditions below:

a) The borrower has a feasible repayment plan;

b) In case of installment revision, the borrower is incapable of paying an installment, including the debt principal and/or interest, within the agreed repayment period specified in the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds, and is considered by VAMC as capable of paying the next installments after the installment revision is made;

c) In case of extension of repayment period, the borrower is incapable of fully repaying the principal and/or interest within the agreed repayment period specified in the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds, and is considered by VAMC as capable of fully paying debts within a certain period of time after the agreed repayment deadline;

d) The extension period shall not exceed the remaining duration of the corresponding special bonds.  VAMC must reach a written agreement with the debt-selling credit institution before deciding an extension period exceeding the remaining duration of the corresponding special bonds.

2. VAMC shall discuss with the debt-selling credit institution before deciding the rescheduling of bad debts.

The debt-selling credit institution shall give its opinions about the issues raised by VACM within 10 working days from the day on which VAMC makes a written request for opinions. After the aforementioned deadline, VAMC shall make decision and take responsibility for the rescheduling of the debt, except the case prescribed in Point d Clause 1 of this Article.

3. Within 05 working days from the day on which debt rescheduling decision is issued, VAMC shall inform the debt-selling credit institution and borrowers in writing of the debt rescheduling for knowing and cooperation.”

9. Clause 3 Article 33 is amended as follows:

“3. VAMC shall not consider restructuring bad debts or giving financial supports to borrowers that are initiating procedures for dissolution or bankruptcy or have their operating license revoked.”

10. Article 36 is amended as follows:

“Article 36. Contribution of charter capital or share capital of borrowers that are enterprises

1. VAMC is entitled to make contribution of charter capital or share capital of the borrower that is an enterprise in the following forms:

a) Convert the bad debts purchased with special bonds into the charter capital or share capital of the borrower;

b) Use assets (except the bad debt purchased with special bonds) and/or lawful funds to make contribution of charter capital or share capital of the borrower (including conversion of the bad debt purchased at the market price into the charter capital or share capital of the borrower).

2. The conversion of bad debts purchased with special bonds into the charter capital or share capital of the borrower shall only be made in the following cases:

a) The borrower is a domestic enterprise engaging in business lines other than insurance, securities, money remittance, foreign exchange, gold trading, factoring, issuance of credit cards, consumer credit, intermediary payment services, and credit information provision;

b) VAMC reaches a written agreement with the debt-selling credit institution on the conversion of the bad debt purchased with special bonds into the charter capital or share capital of the borrower before carrying out that conversion.

c) The debt-selling credit institution is a commercial bank that meets the following requirements:

(i) It is allowed to contribute capital and purchase shares according to its establishment and operation license;

(ii) It maintains the minimum capital adequacy ratio as prescribed in Point b Clause 1 Article 130 of the Law on Credit Institutions and the ratio of capital contribution/share purchase as prescribed in Article 129 of the Law on Credit Institutions, and has the actual value of its charter capital lower than the legal capital (the contributed capital/share capital converted from bad debts purchased with special bonds must be taken into accounts when calculating the ratio/value of the charter capital as mentioned above) at the time of obtaining the document specified in Point b of this Clause;

(iii) It earns profits as shown in its financial statements, which have been audited by an independent audit organization, of the year preceding the year in which it obtains the document specified in Point b of this Clause;

(iv) It did not incur any penalties for administrative violations against debt classification, setting aside and use of provisions for risks, capital contribution and share purchase within the consecutive period of 12 months preceding the month in which it obtains the document specified in Point b of this Clause;

(v) Its organizational structure, Board of Directors, Board of Members, Control Board, and General Director (Director) conform to regulations of the Law on Credit Institutions and SBV’s regulations.

3. Within 05 working days from the day on which the bad debt purchased with special bonds is converted into the charter capital or share capital of the borrower, VACM shall resell the stakes/shares to the debt-selling credit institution at their values and make payment of special bonds.

4. The money earned from the bad debt during the period commencing from the day on which VAMC purchases the bad debt with special bonds to the day on which the bad debt is converted into the charter capital or share capital shall be settled according to Clause 2 Article 43 hereof.

5. In case of contribution of charter capital/ share capital of the borrower that is an enterprise as prescribed in Point b Clause 1 of this Article, VAMC must satisfy the following requirements:

a) The plan for contribution of charter capital/share capital of the borrower is feasible and approved by SBV. The approved plan must include analysis and assessment of efficiency of the contribution of charter capital/share capital, financial status and business results of the borrower, funding sources for making capital contribution, possibility of recovering contributed capital and proposed measures for recovering contributed capital and restructuring of the borrower;

b) VAMC is entitled to engage in the restructuring of the borrower after making contribution of charter capital/share capital;

c) The contribution of charter capital/share capital does not result in breach of regulations on limits of the charter capital/share capital contribution by VAMC as prescribed in Clause 2 Article 33 of this Circular;

d) The borrower has the possibility of recovering its solvency and business after VAMC contributes charter capital/share capital;

dd) The borrower is not under the process of dissolution or bankruptcy and does not has its operation license revoked."

11. Clause 4 Article 42 is amended as follows:

“4. Fines (if any).”

12. Article 43a is added following Article 43:

“Article 43a.   Settling repayments of bad debts purchased with bonds at market price

1. If the bond-holding credit institution does not take a refinancing loan based on the bonds issued to purchase the bad debt, or bonds which have been purchased according to financial instrument repo agreements between SBV and the credit institution and are not mature, within 05 working days from the day on which the money or property is obtained from the debt repayment, VAMC shall leave an amount of money equivalent to the money or property obtained from debt repayment (up to the face value of bonds) at the bond-holding credit institution in the form of deposit without interest and shall not withdraw it before the payment of bonds, except the cases prescribed in Clauses 2, 3 of this Article.

2. If the bond-holding credit institution takes a refinancing loan based on the bonds issued to purchase the bad debt (even when the refinancing loan matures but the credit institution does not make full repayment), VAMC shall:

a) Within 03 working days from the receipt of SBV's notification of the use of bonds as the collateral for the refinancing loan at SBV, VAMC shall use the amount of money equivalent to the accumulated money or property recovered from the bad debt purchased with bonds at the market price (up to the face value of bonds) to repay the refinancing loan received on such bonds;

b) Within 05 working days from the day on which the money or property is obtained from the debt repayment, VAMC shall use the amount of money equivalent to the money or property recovered from the bad debt purchased with bonds at the market price (up to the face value of bonds) to repay the refinancing loan received on such bonds;

c) SBV shall release the bonds pledged for the refinancing loan only after the refinancing loan based on such bonds has been fully repaid;

d) VAMC shall deduct the amount of money specified in Points a, b of this Clause from the total amount payable to the bond-holding credit institution by VAMC when making payment of bonds.

3. If bonds are held by SBV (unless bonds are used under financial instrument repo agreements between SBV and the credit institution and are not mature), VAMC shall:

a) Within 03 working days from the receipt of SBV's notification of the SBV’s definitive purchase of bonds or the credit institution’s failure to pay or to make full payment of bond repurchase amount specified in the financial instrument repo agreements between SBV and the credit institution, VAMC shall use the amount of money equivalent to the accumulated money or property recovered from the bad debt purchased with bonds at the market price (up to the face value of bonds) to meet payment obligations which are not yet fulfilled by the credit institution according to the financial instrument repo agreements between SBV and the credit institution or to meet debt obligations under the bond issuance contract;

b) Within 05 working days from the day on which the money or property is obtained from the debt repayment, VAMC shall use the amount of money equivalent to the accumulated money or property recovered from the bad debt purchased with bonds at the market price (up to the face value of bonds) to meet payment obligations which are not yet fulfilled by the credit institution according to the financial instrument repo agreements between SBV and the credit institution or to meet debt obligations under the bond issuance contract;

c) VAMC shall deduct the amount of money specified in Points a, b of this Clause from the total amount payable to the bond-holding organization by VAMC when making payment of bonds.

4. If the money or property obtained from debt repayment is not lower than the face value of bonds, VAMC and the bond-holding organization shall make payment of bonds according to Article 44a of this Circular.”

13. Clause 2 Article 44 is amended as follows:

“2. Within 05 working days from the maturity date of special bonds prescribed in Clause 1 of this Article, the debt-selling credit institution shall fully repay the refinancing loan based on corresponding special bonds (if any), have the special bonds released by SBV (the Operations Center), and cooperate with VAMC to make payment of special bonds as follows:

a) In case the bad debt is not fully collected (including principal, interest, and relevant financial obligations) under the credit contract, loan agreement, entrustment contract for credit extension, debt purchase contract, corporate bond purchase contract or entrustment contract for purchasing corporate bond, the debt-selling credit institution shall use corresponding special bonds to repurchase the bad debt from VAMC at book value of outstanding principal according to VAMC’s accounting records and the stake/shares in the borrower at book value according to the balance sheet of VAMC in case part of the bad debt is converted into charter capital or share capital of the borrower (if any); the debt-selling credit institution shall receive an amount on the debt repayment from VAMC according to Point b Clause 2 Article 43 of this Circular (if any);

b) In case the bad debt is fully collected (including principal, interest, and relevant financial obligations) under the credit contract, loan agreement, entrustment contract for credit extension, debt purchase contract, corporate bond purchase contract or entrustment contract for purchasing corporate bond (even if the bad debt is sold to another entity), the debt-selling credit institution shall use corresponding special bonds to repurchase the stake/shares in the borrower at book value according to the balance sheet of VAMC in case part of the bad debt is converted into charter capital or share capital of the borrower (if any); the debt-selling credit institution shall receive an amount on the debt repayment from VAMC according to Point b Clause 2 Article 43 of this Circular;

c) If the whole bad debt is converted into charter capital/ share capital of the borrower that is an enterprise, the debt-selling credit institution shall use corresponding special bonds to repurchase the stake/shares in the borrower at book value according to the balance sheet of VAMC, and pay the VAMC an amount from the debt repayment to which VAMC is entitled according to Point a Clause 2 Article 43 of this Circular.”

14. Article 44a is added after Article 44 as follows:

“Article 44a.   Payment of bonds

1. Bonds (except bonds which are used under financial instrument repo agreements between SBV and the credit institution and are not mature) shall be paid in the following cases:  

a) The amount of money or property collected from the bad debt is not lower than the face value of bonds;

b) VAMC sells the bad debt or converts the partial or whole bad debt into the stake/shares;

c) VAMC has paid for the full face value of bonds;

d) The bonds are mature.   

2. Within 05 working days from the payment date of bonds prescribed in Clause 1 of this Article, VAMC shall:

a) If bonds are held by a credit institution which does not take a refinancing loan based on bonds, VAMC shall pay the credit institution for the face value of bonds and credit institution shall return the bonds to VAMC;

b) If bonds are held by a credit institution which takes a refinancing loan based on bonds, VAMC shall repay the refinancing loan based on such bonds (up to the face value of bonds) to SBV on behalf of that credit institution; VAMC shall pay the remaining payment amount of bonds (if any) to the bond-holding credit institution and have bonds returned by bond-holding credit institution;

c) If bonds are held by SBV, VAMC shall pay SBV for the full face value of bonds and have bonds returned by SBV.

3. If bonds are used under a financial instrument repo agreement between SBV and the credit institution, are not mature and are eligible for one of the case in Points a, b, c Clause 1 of this Article, at the maturity date, VAMC shall:

a) If the credit institution makes full payment of repurchase amount specified in the financial instrument repo agreement between SBV and the credit institution, in which bonds are used, within 05 working days from the day from the prescribed repurchase date, VAMC shall pay an amount equal to the face value of bonds to the credit institution and also have bonds returned by the credit institution;

b) If the credit institution fails to pay or to make full payment of repurchase amount specified in the financial instrument repo agreement between SBV and the credit institution, in which bonds are used, within 05 working days from the day from the prescribed repurchase date, VAMC shall pay the amount of money which is not yet paid by the credit institution to SBV according to the financial instrument repo agreement between SBV and the credit institution; VAMC shall make the remaining payment of bonds (if any) to the bond-holding credit institution and have bonds returned by that bond-holding credit institution.”

15. Clause 2 Article 48 is amended as follows:

“2. The Operations Center shall:

a) carry out issuance, payment and cancellation of bonds and special bonds at the request of VAMC; extend the duration of special bonds under SBV's written approval;

b) provide guidance on the procedures for issuance, payment, cancellation and depositing of bonds/ special bonds, and extend the duration of special bonds on SBV's electronic trading system;

c) Block bonds/special bonds related to refinancing loans in case credit institutions holding bonds/special bonds take refinancing loans; release bonds/special bonds when credit institution have fully repaid the financial loans based on such corresponding bonds/special bonds;

d) make certification of special bonds corresponding to the bad debt, which are not blocked by SBV, at the request of VAMC when VAMC converts the bad debt purchased with special bonds into the bad debt purchased at the market price;

dd) Play the leading role and cooperate with the Monetary Policy Department in monitoring the use of bonds for carrying out open market transactions or the use of bonds/special bonds for taking refinancing loans at SBV by credit institutions;

e) Within 03 working days from the day on which the bonds are used for taking a refinancing loan or conducting an open market transaction at SBV, or from the day on which the refinancing loan for which bonds are pledged matures but the credit institution fails to make full repayment by the due date, or from the day on which the credit institution fails to pay or to make full payment of repurchase amount specified in the financial instrument repo agreement between SBV and the credit institution, in which bonds are used, the Operations Center shall give a written notification to VAMC for fulfilling its duties as prescribed in this Circular;

g) Cooperate with VAMC to settle collected debt repayments and payments of bonds which are used for taking refinancing loans or conducting open market transactions with SBV as prescribed in Article 43a and Article 44a of this Circular.”

16. Clause 5 Article 48 is amended as follows:

“5. The Information Technology Department shall assist other affiliated units of SBV and VAMC in cooperating, sharing, providing and accessing information and statistical data on trading and settlement of bad debts.”

17. Clause 6a is added to Clause 6 Article 48 as follows:

“6a. The Monetary Police Department shall cooperate with the Operations Center in monitoring the use of bonds for carrying out open market transactions or the use of bonds/special bonds for taking refinancing loans at SBV by credit institutions.”

18. Clause 9, Clause 10 are added to Article 49 as follows:

“9. By the 10^th day of each month, provide electronic monthly reports on its purchased bad debts and changes in such bad debts to the National Credit Information Center of Vietnam through the web portal of the National Credit Information Center of Vietnam.

10. Cooperate with the Operations Center to settle collected debt repayments and payments of bonds which are used for taking refinancing loans or conducting open market transactions with SBV.”

19. Point dd, Point e are added to Clause 4 Article 50 as follows:

“dd) Debt-selling credit institutions that receive special bonds shall not receive cash dividends until the payment of such special bonds is made, except the case prescribed in Point e of this Clause;

e) Debt-selling credit institutions that receive special bonds with terms longer than 5 years or credit institutions that obtain SBV's approval of extension of duration of special bonds shall not receive dividends in order to create a source for settling bad debts until such special bonds are paid.”

Article 2. Implementation organization

Chief of Office, Chief of Banking Supervision Agency, heads of relevant units affiliated to the SBV, Directors of the SBV’s branches in provinces or central-affiliated cities, Chairpersons of the Board of Directors, Chairpersons of the Board of Members, and General Directors (Directors) of credit institutions in Vietnam, and Chairperson of Board of Members and General Director of VAMC shall implement this Circular.

Article 3. Implementation provisions

1. This Circular comes into force from February 14, 2020.

2. This Circular shall nullify:

a) Clauses 6, 9, 26, 27 and 38 Article 1 of the Circular No. 14/2015/TT-NHNN dated August 28, 2015 of the Governor of the State Bank of Vietnam on amendments to the Circular No. 19/2013/TT-NHNN ;

b) Clauses 4, 7, 13, 17 and 18 Article 1 of the Circular No. 08/2016/TT-NHNN dated June 16, 2016 of the Governor of the State Bank of Vietnam on amendments to the Circular No. 19/2013/TT-NHNN ./.