Thông tư 26/2014/TT-NHNN

CIRCULAR

ON REFINANCED LOANS IN VIET NAM DONG OF THE STATE BANK OF VIET NAM FOR CREDIT INSTITUTIONS ACCORDING TO DECISION NO. 540/QD-TTG DATED APRIL 16, 2014 OF THE MINISTER OF THE GOVERNMENT ON CREDIT POLICIES APPLIED TO SHRIMP FARMERS AND PANGASIUS FARMERS

Pursuant to Law on the State bank of Viet Nam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 156/2013/ND-CP dated November 11, 2013 of the Government defining functions, duties, entitlements and organizational structure of the State bank of Viet Nam;

Pursuant to Decision No. 540/QD-TTg dated April 16, 2014 of the Minister on credit policies applied to shrimp farmers and pangasius farmers;

At the request of Director of Monetary Policy Department;

The Governor of the State bank of Viet Nam issues the Circular on refinanced loans in Viet Nam dong of the State bank of Viet Nam for credit institutions according to Decision No. 540/QD-TTg dated April 16, 2014 of the Minister of the Government on credit policies applied to shrimp farmers and pangasius farmers.

Article 1. Scope and regulated entities

1. The scope:

This Circular provides for refinanced loans in Viet Nam dong of the State bank of Viet Nam (hereinafter referred to as State bank) for credit institutions according to Decision No. 540/QD-TTg dated April 16, 2014 of the Minister of the Government on credit policies applied to shrimp farmers and pangasius farmers (hereinafter referred to as Decision No. 540/QD-TTg)

2. Regulated entities:

Credit institutions shall freeze loans as prescribed in Decision No. 540/QD-TTg for households, farm owners and co-operatives farming shrimps and pangasius who face difficulties in business and repay debts to credit institutions up to December 31, 2013 (hereinafter referred to as clients).

Article 2. Refinanced amount

The refinanced amount of State bank for the credit institution shall be equivalent to the amount frozen by the credit institution as prescribed in Decision 540/QD-TTg

Article 3. The duration of refinancing, extension of refinancing

The duration of refinancing is 364 days and it shall be automatically extended if refinanced debt balance is still positive on the expiration date.

Each extension is the same as the initial duration. The last extension must ensure that the total refinancing duration and extension is 03 years from the refinancing date.

Article 4. Refinancing interest rate

1. The refinancing interest rate over the refinancing duration and extension as prescribed in Article 3 of this Circular shall be 0% per year.

2. After the refinancing expiration date, the interest rate shall be 150% of the refinancing interest rate which is announced at the time of converting refinanced loans into overdue debt by State bank.

Article 5. Procedures for refinancing

1. The credit institution shall send 04 applications for refinancing directly or by post to State bank (Monetary Policy Department). The application for refinancing shall include:

a) The application form for refinancing provided in Annex 01 issued together with this Circular.

b) The report on the List of qualified clients whose loans have been frozen provided in Annex 02 issued together with this Circular.

2. Within 02 working days from the receipt of application for refinancing, the Monetary Policy Department shall send the application to Credit Department of economic fields, The Banking Inspection and Supervision Agency for consideration.

3. Within 07 working days from the receipt of request of the Monetary Policy Department, Credit Department in economic fields, The Banking Inspection and Supervision Agency shall make remarks to the Monetary Policy Department.

4. Within 07 working days from the receipt of all units’ remarks, the Monetary Policy Department shall submit documents to the Governor of the State bank for consideration.

5. Pursuant to Decision of the Governor of State bank on refinanced loans for the credit institution, Exchange Department of State bank shall enter into an agreement, refinance the credit institution’s loan, or extend the refinancing period to the credit institution.

Article 6. The authority of the credit institution to sign documents

The person who signs the documents on refinanced loans at State bank on behalf of the credit institution is its representative.

Article 7. Debt payment for refinanced loans

1. After 03 years from the refinancing date, the credit institution must pay off the refinance loan to State bank.

2. The credit institution must repay State bank refinanced loans before the expiration date in the following cases:

a) The clients repaid debts to the credit institution during the duration of freezing loans. Within the first 10 working days of the month, the credit institution must repay State bank the amounts of refinanced loans which are equivalent to the amounts that the clients repay to the credit institution in the previous month.

b) The cases in which refinanced loans must be repaid before the expiration date as prescribed.

Article 8. Credit institution’s failure to repay debt on time

In case the credit institution fails to repay debt of refinanced loans on time as prescribed in Clause 1 Article 7 of this Circular, the State bank shall convert the remaining debt of the credit institution into overdue debt and apply the overdue refinancing interest rate as prescribed in Clause 2 Article 4 of this Circular from the expiration date, and carry out measures for debt recovery as follows:

1. Withdraw an amount from the deposit account of the credit institution at State bank.

2. Collect principal and interest from other sources of the credit institution.

3. Take other measures as prescribed.

Article 9. Responsibility of the credit institution

1. Take legal responsibility for the validity of documents, figures and materials supplied to State bank.

2. Monitor, release statistics punctually and correctly on the frozen loans as prescribed in Decision No. 540/QD-TTg to serve the internal audit, report to State bank and the inspection of competent authorities.

3. Repay refinanced loans as prescribed in this Circular.

4. Facilitate the inspection and supervision of the State bank with regard to the implementation of this Circular.

5. Report the debt repayment of clients whose loans are frozen to the State bank using the form provided in the Annex 03 issued together with this Circular within the first 10 working days of the month.

6. Take other responsibility as prescribed.

Article 10. Responsibility of the State bank affiliated units

1. Monetary Policy Department shall:

Take in charge of, cooperate with relevant units to submit documents to the Governor of State bank for consideration and decide whether refinance loans for the credit institution and process problems arising in the implementation of this Circular.

2. The Credit Department of economic fields shall:

Make remarks to the Monetary Policy Department in accordance with the duration as prescribed in Clause 3 Article 5 of this Circular about the following contents:

a) Application for refinanced loans of the credit institution

b) The amounts that the credit institution freeze loans for clients.

c) The confirmation of conformity with requirements on the List of qualified clients who have been frozen loans made by the credit institution at State bank.

3. Bank Supervision and Inspection Agency shall:

a) Make remarks to the Monetary Policy Department on application for refinanced loans of the credit institution according to the duration as prescribed in Clause 3 Article 5 of this Circular.

b) Take in charge of, cooperate with branches of the State bank in the provinces, cities to supervise and inspect the implementation under regulations of this Circular; process within their competence and propose the Governor of the State bank to process the cases of violations as prescribed in this Circular and other relevant regulations.

4. Exchange Department of the State bank shall:

a) Enter into an agreement on refinanced loans between State bank and the credit institution.

b) Disburse, extend and recover the refinanced loans of the credit institution in accordance with the contract and regulations in this Circular; take in charge of, cooperate with relevant units to submit documents to the Governor of State bank on measures for debt recovery of refinanced loans in case the credit institution has not repaid on time.

c) Record and monitor the account of refinanced loans.

d) Report to the Governor of State bank, the Credit Department of economic fields, Bank Supervision and Inspection Agency and Monetary Policy Department on refinanced loans, debt payment of refinanced loans for the credit institutions as prescribed in the Annex 04 enclosed with this Circular within 10 working days in the early quarter.

5. Department of Finance - Accounting shall:

Provide guidance on record of refinancing operations of State bank for the credit institution as prescribed in Decision No. 540/QĐ-TTg

6. Branches of State bank central-affiliated cities and provinces shall:

Monitor, inspect the local credit institutions, the local branches of credit institutions in the implementation under regulations of this Circular; process within their competence and propose the Governor of State bank to process the violation as prescribed; report the result to the Governor of State bank (through Bank Supervision and Inspection Agency) .

Article 11. Implementation provision

1. This Circular shall take effect from November 1, 2014.

2. The Chief Officers, the Director of the Monetary Policy Department, the Heads of State bank affiliated units ; Directors of Branches of the State bank in the provinces, cities; Presidents of the Member Assembly, Presidents of the Board of Directors and General Director (Director) of credit institutions are responsible for implementation of this Circular./.