Công văn 4700/NHNN-TCKT

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); Circular No.05/2009/TT-NHNN dated 07/4/2009 of the State Bank providing in details for the implementation of giving interest rate support to organizations, individuals that borrow medium, long term loans from banks to make new investments for production and business development (Circular No. 05/2009/TT-NHNN); and Circular No. 09/2009/TT-NHNN dated 05/5/2009 of the State Bank providing in details for the implementation of interest rate support to loans for procurement of machine, equipment, materials serving agricultural production and materials for building dwelling house in rural areas (Circular No.09/2009/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 for loans entitled to interest rate support, the State Bank of Vietnam (SBV) provides guidance to CIs (mentioned above) which are authorized to provide loans with interest rate support in accordance with provisions of the Circular 02/2009/TT-NHNN Circular No.05/2009/TT-NHNN and Circular No.09/2009/TT-NHNN (hereinafter referred to as Commercial banks and Finance Companies) on making accounting of interest rate support as follows:

I. GENERAL PRINCIPLES

1. The commercial banks and Finance Companies 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. In collecting loan interests, Commercial banks and Finance companies shall deduct immediately interest amount payable to borrowers equal to loan interest amount entitled to interest rate support in accordance with applicable provisions.

3. Commercial banks and Finance companies shall be obliged to have printable list sheet or database in order to serve the preparation of reporting forms in accordance with provisions of the Circular 02/2009/TT-NHNN Circular No.05/2009/TT-NHNN and Circular No.09/2009/TT-NHNN to make final settlement of amount of interest rate support and carry out examination, auditing, supervision in accordance with applicable provisions. The list sheet or database 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 borrower in accordance with the interest rate provided for in Credit contract, arising in month and accumulated until the reporting time;

- Loan interest amount already paid by the borrower (writing down of interest rate support was made already), arising in month and accumulated until the reporting time;

- Loan interest amount entitled to interest rate support (unrealized amount and realized amount), arising in month and accumulated until the reporting time;

- Other factors in accordance with guidance of the SBV (if any) and management request of Commercial banks and finance companies.

4. For amount used for giving interest rate support contrary to applicable provisions, the Commercial banks and finance companies must immediately revoke for returning to the State.

5. On a monthly basis, Commercial banks and Finance companies shall be obliged to make the “List sheet of revenues and balances of receivable, payable accounts related to interest rate support”. The list sheet shall be drawn up separately by each mechanism of interest rate support (form as in appendix 01 attached to this Official Dispatch) and submitted to the SBV (Monetary Policy Department and Finance – Accounting Department), on the 10th of the month following the reporting month, for transfer of interest rate support amount.

With a view to being suitable with the actual situation, from June 2009 onwards, Commercial banks and Finance companies shall make and send list sheet in accordance with the form and time prescribed hereinabove. For previous months, Commercial banks and Finance companies shall recheck data for making and resending the list sheet in line with this form; deadline shall be prior to 31/07/2009.

6. Commercial banks and Finance companies must 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 following up. Commercial banks and Finance companies shall take full responsibility 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 technological and management application, the Commercial banks and finance companies 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 Circular No.05/2009/TT-NHNN and Circular No.09/2009/TT-NHNN.

2. For each interest rate support mechanism (interest rate support mechanism under the Circular No.02/2009/TT-NHNN interest rate support mechanism under the Circular No.05/2009/TT-NHNN and interest rate support mechanism under the Circular No.09/2009/TT-NHNN) the commercial banks and finance companies shall open 2 detailed accounts belonging to the account 3539 “Amounts pending for payment by State budget” for separately accounting, following up amount of loan interest entitled to interest rate support, of which the deduction has been made 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, Commercial banks and Finance companies shall account it into the account 4599 “Other items pending for payment”; open detailed account “Receiving money for giving interest rate support”, but separately for each mechanism of interest rate support.

4. For amounts of interest rate support which were incompliance with applicable provisions, upon recovering them, Commercial banks and Finance companies shall account separately into the account 4539 “Other payables”; open detailed account “recovered amount of interest rate support for repayment to the State”, but separately for each mechanism of interest rate support.

5. Upon making the Balance sheet, Commercial banks and Finance companies 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:

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 banks and finance companies, but not yet collected from customer and carried over to loan group 2, 3, 4 and 5:

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 commercial bank/finance company in accordance with applicable provisions, to make following accounting entries:

a) In case of collecting interest in accordance with estimated revenue method:

At the same time, to deduct immediately loan interest to be given interest rate support for borrower, to make accounting entries as follows:

b) In case of collecting interest in accordance with real revenue method:

For some Commercial banks or Finance companies which face difficulties in implementing instructions on accounting as prescribed in point (1) and (2) of Section III hereinabove, such commercial banks or finance companies shall be required to organize the operational accounting (using their own software or applying appropriate method of recording, collecting and classifying data) for recording, collecting and classifying and reporting, on an accurate, timely and sufficient basis, data on unrealized interest rate support and data on realized interest rate support in accordance with provided forms. In this case, the commercial banks or finance companies must have an operational process and provide thorough, sufficient guidance for the implementation of officers.

3. On a monthly basis, upon receiving the transfer of interest rate support amount, it is required to account as follows:

To Debit against account “deposit at the SBV”

To Credit to account 4599 – Other accounts pending for payment

(Detailed: Receiving money for giving interest rate support under appropriate interest rate support mechanism)

4. To recover 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 not in conformity with applicable provisions:

- Where the cause belongs to the customer who failed to use loan capital for the right purpose as provided for in the Circular No. 02/2009/TT-NHNN Circular No.05/2009/TT-NHNN and Circular No.09/2009/TT-NHNN: the Commercial banks and Finance companies shall be obliged to deduct immediately deposit account of customer or request customer to deposit cash for recovery of loan interest amount which enjoyed interest rate support 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 under appropriate interest rate support mechanism)

The commercial banks and finance companies 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 banks and Finance companies which failed to provide loans to right subjects as provided for in the Circular No. 02/2009/TT-NHNN Circular No.05/2009/TT-NHNN and Circular No.09/2009/TT-NHNN then responsibility shall be imputed to related units and individuals and accounting shall be made immediately 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 under appropriate interest rate support mechanism)

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 under appropriate interest rate support mechanism)

To Credit to account “deposit at the SBV”

or to make accounting under the instructions 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 final settlement of interest rate support amount; and upon receiving the transfer of interest rate support amount (the remaining), after reconciliation, the Commercial banks and finance Companies shall make final settlement of balances of account 4599 and account 3539 (mentioned above), make following accounting entry:

After making final settlement of the interest rate support amount, if any receivables, payables related to interest rate support arise, the Commercial banks and finance companies 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 banks and finance companies shall deal with those payables 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 banks and finance companies shall account separately and deal with in accordance with the guidance of competent levels of the SBV.

This Official Dispatch shall replace the Official Dispatch 1183/NHNN-TCKT dated 23/2/2009 of the SBV on guiding the accounting of interest rate support in 2009 and the Official Dispatch No.1948/NHNN-TCKT dated 23/3/2009 of the SBV on answering query in the accounting of interest rate support in 2009. During the process of implementation, any query that may arise should be reflected by the Commercial banks and finance companies to the SBV (Finance – Accounting Department) for timely guidance of settlement.

LIST

OF FINANCE COMPANIES ENGAGING IN INTEREST RATE SUPPORT
(In conjunction with the Official Dispatch No.4700/NHNN-TCKT dated 22/6/2009 of the State Bank of Vietnam)

1. Rubber Finance Company;

2. Vietnam Coal and Minerals Finance Company;

3. PetroVietnam Finance Company;

4. Vinashin Finance Company;

5. Handico Finance Company;

6. Garment and Textile Finance Company;

7. EVN Finance Company;

8. Song Da Finance Company;

9. Cement Finance Company.

APPENDIX 01

(Attached to the Official Dispatch No. 4700/NHNN-TCKT dated 22 June 2009 of the State Bank

NAME OF COMMERCIAL BANK

LIST SHEET OF RETURNS AND BALANCES OF RECEIVABLE, PAYABLE ACCOUNTS RELATED TO INTEREST RATE SUPPORT(1)
(Interest rate support mechanism under the Circular No…. (2) … /2009/TT-NHNN)

Month... 200X

Unit:...

Note:

- (1) List sheet prepared under each interest rate support mechanism;

- (2) In accordance with the Circular No.02/2009/TT-NHNN or Circular No.05/2009/TT-NHNN or Circular No.09/2009/TT-NHNN.