Thông tư 24/2019/TT-NHNN

CIRCULAR

REFINANCING LOANS TO CREDIT INSITUTIONS IN THE FORM OF ON-LENDING ON THEIR CREDIT-RELATED DOCUMENTS

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law on Amending and Supplementing certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government's Decree No. 16/2017/ND-CP dated February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Upon the request of the Director of the Monetary Policy Department,

The Governor of the State Bank of Vietnam hereby promulgates the Circular on refinancing loans to credit institutions in the form of on-lending on their credit-related documents.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and subjects of application

1. This Circular prescribes the State Bank of Vietnam (SBV)’s refinances to credit institutions in the form of on-lending on their credit-related documents.

2. SBV provides refinance in the form of on-lending on credit-related documents for credit institutions established and operated under the provisions of the (amended or supplemented) Law on Credit Institutions, including:

a) Commercial banks:

b) Cooperative banks:

c) Finance companies and financial leasing companies.

Article 2. Currency unit accepted for refinancing

Currency unit used for refinancing in the form of on-lending on credit institution's credit-related documents must be Vietnamese dong.

Article 3. Principles for preparation and submission of application package for refinanced loans or extension of refinanced loans

1. Documents included in the application package must be written in Vietnamese. They must be signed by legal representatives of credit institutions.

2. Documents included in the application package must be original copies or those copied from master registers or certified true copies or duplicate copies associated with original ones which are presented for verification purposes.

3. Application package may be sent directly, in person or by post.

Article 4. Refinancing purposes

SBV refinances loans in the form of on-lending on credit institution’s credit-related documents to meet the following purposes:

1. Supporting credit institutions in paying deposits to personal and corporate customers (including other credit institutions, foreign bank branches), repaying borrowed funds to other credit institutions or foreign bank branches (hereinafter referred to as liquidity support).

2. Providing financial support for loans granted to industries or sectors that Government’s Decrees prescribe that SBV provides with support policies through monetary policy tools (hereinafter referred to as loan support for promoted sectors or industries).

Article 5. Credit-related documents used for refinancing and refinancing extension

Credit-related documents serving as required conditions for refinancing or extension of refinancing in the form of on-lending on credit-related documents are documentation on Vietnamese-dong loans that credit institutions give their customers.

Article 6. Interest rate

1. Interest rates on refinance or extension of refinance in the form of on-lending on credit-related documents indicates refinancing interest rates that are changed over time and are quoted by SBV at the time when a refinanced loan is disbursed or given grace.

2. The rate of overdue interest on principal of a refinanced loan can reach as much as 150% of the interest rate currently applied to that refinanced loan.

Article 7. Time limits for refinancing and refinancing extension

1. Period of refinancing in the form of on-lending on credit-related documents shall be considered, decided by SBV, and shall be less than 12 months.

2. Grace period of each refinance shall not exceed the time limit for each refinanced loan; the period of refinance and the grace period of refinance shall not be over 12 months in total.

Article 8. Repayment of refinanced loan debts and response to the situations in which credit institutions fail to pay off debts by due dates

1. Credit institutions must pay off their outstanding principal and interest owed to SBV when loans refinanced in the form of on-lending on credit-related documents are due.

2. Credit institutions may repay debts incurred from refinance in the form of on-lending on credit-related documents ahead of maturity.

3. In case of being discovered to commit any violation prescribed in clause 1 and 2 of Article 11 herein, the defaulting credit institution shall be obliged to pay off their outstanding principal and interest on refinance provided in the form of on-lending on their credit-related documents for the purposes of support for grant of loans to promoted sectors or industries (including any refinanced loan given a grace period) within 10 working days of receipt of SBV’s notice of such violation.

4. In cases where a credit institution defaults on the refinanced loan taken out in the form of on-lending on credit-related documents by its maturity in accordance with clause 1 of this Article, and does not have access to SBV's refinancing extension, or fails to repay all debts as provided in clause 3 of this Article, SBV shall apply the following measures:

a) Writing the refinanced loan off as an overdue debt in accordance with SBV’s regulations on methods of assessing and accounting for receivables or interest payments arising from deposit reception and lending transactions between SBV and the credit institution; applying an overdue interest rate to the principal on the refinanced loan as provided in clause 2 of Article 6 herein;

b) Taking out money from the Vietnamese-dong payment account opened at SBV after sending its written notice of such take-out serving the purposes of recovering debts to the defaulting credit institution;

c) Recovering debts from other capital sources of the defaulting credit institution (if any).

Article 9. Conversion of refinanced loans into special loans

Conversion of a refinanced loan taking out in the form of on-lending on credit-related documents into a special loan shall be subject to the State Bank’s regulations on special loans offered to credit institutions going into special administration.

Article 10. Refinancing interest relief and exemption

SBV shall not grant credit institutions any interest relief or exemption for refinances in the form of on-lending on credit-related documents.

Article 11. Disciplinary actions

1. Upon receipt of the notification from a jurisdictional entity or after inspections or assessments, if it is discovered that a credit institution has provided inaccurate data and information in their application package for refinancing and renewal of a refinance provided in the form of on-lending on credit-related documents, or in the report on use of refinanced loan disbursement according to the Appendix No.08 hereto, or has been in breach of regulations laid down in point a of clause 6 of Article 21 herein, SBV shall have the right to refuse to consider such application for refinanced loan used for the purposes stated in clause 2 of Article 4 herein in the entire following year after sending the written notice of such violation to the defaulting credit institution.

2. Upon receipt of the notification from a jurisdictional entity or after inspections or assessments, if it is discovered that a credit institution has provided inaccurate data and information in their application package for refinancing and renewal of a refinance provided in the form of on-lending on credit-related documents, or in the report on use of refinanced loan disbursement according to the Appendix No.6 hereto, or has been in breach of regulations laid down in point a of clause 21 of Article 2 herein, SBV shall have the right to refuse to consider such application for refinanced loan used for the purposes stated in clause 4 of Article 02 herein in the entire following year after sending the written notice of such violation to the defaulting credit institution.

3. In case where any credit institution is discovered to commit any violation referred to in clause 1 and 2 of this Article, SBV may revoke its decision on refinancing of loans used for the purposes stated in clause 2 of Article 4 herein (if any).

Chapter II

SPECIFIC PROVISIONS

Section 1. REFINANCING IN THE FORM OF ON-LENDING ON CREDIT-RELATED DOCUMENTS FOR LIQUIDUITY SUPPORT PURPOSES

Article 12. Conditions for refinancing and refinancing extension

SBV shall consider issuing its decision on refinancing and extension of refinancing in the form of on-lending on credit-related documents to credit institutions fully meeting the following conditions:

1. They are facing solvency difficulty and are not going into special administration.

2. They have undertaken that they do not have or have already used up valuable papers mentioned in the list of valuable papers accepted for use in SBV's transactions as of the date of submission of their application forms for refinancing or refinancing extension, and that loans mentioned in checklists of credit-related documents (i.e. checklists of loans referred to in Appendix No.03 hereto) for refinancing or refinancing extension purposes meet standards stipulated in Article 13 herein in full.

Article 13. Standards for loans mentioned in checklists of credit-related documents

Loans mentioned in checklists of credit-related documents that credit institutions compile to apply for refinancing or extension of refinancing in the form of on-lending on credit-related documents must fully meet the following standards:

1. They are Vietnamese-dong loans whose entire value are secured by property put up as collateral in accordance with legislative regulations, and which are classified into the type-1 debt group as per SBV’s regulations on classification of debts of credit institutions.

2. They are not loans used in sectors or industries for which credit facilities are subject to credit restriction and control by credit institutions upon requests of the Government or SBV over periods of time.

3. They are not used to serve other unspecified purposes.

4. On the date of submission of their application for refinancing or refinancing extension, the number of days left to maturity of these loans is at least 60 days greater than the requested maturity period of refinanced loan or the extended duration of refinanced loan.

Article 14. Refinance or extended refinance limits

Limits on refinances or extended refinances taken out in the form of on-lending on credit-related documents shall be subject to SBV’s assessment and decision made on the basis of payment capabilities of credit institutions, but shall not exceed 60% of total outstanding principal balances of loans mentioned in checklists of credit-related documents which are used for refinancing or refinancing extension purposes.

Article 15. Procedures for pre-approval assessment of refinancing and refinancing extension

1. When wishing to receive a refinance, or extension of a refinance, taken out in the form of on-lending on credit-related documents, the applicant credit institution must send 1 set of application documents to SBV (via Monetary Policy Department). In particular, in case of application for a refinancing extension, the credit institution must send their application documents to SBV at least 20 business days before the payment due date of the existing loan. If submitted documents are not sufficient as required by regulations in force, within 02 business days of receipt of these submitted documents, SBV (namely, Monetary Policy Department) must send the requesting credit institution a written request for any necessary modification or supplement.

Application package for refinancing or refinancing extension shall include the following documents:

a) Application form for refinancing loan which is given in the Appendix No.01 hereto, or Application form for extension of refinance which is given in the Appendix No. 02 hereto;

b) Detailed report on the following matters: Fulfillment of conditions for refinancing or refinancing extension referred to in Article 12 herein; difficulties in payment capabilities of applicant credit institutions; explanatory notes on refinanced loan limits; measures already applied and planned to be applied to address difficulties in payment and solvency capabilities;

c) Checklist of credit-related documents required to be submitted to apply for refinancing or refinancing extension which is given in Appendix No. 03 hereto (02 copies);

d) Data report which is given in the Appendix No. 04, 05 or 06 hereto (in case of refinancing of loans), or Appendix No. 04 and 05 hereto (in case of extension of refinancing of loans).

2. Within 02 business days of receipt of all required documents from credit institutions which are prescribed in clause 1 of this Article, the Monetary Policy Department shall consult with the Bank Supervision and Inspection Agency, Department of Economic Sector Credit or SBV branches in cities or provinces where credit institutions’ main offices are located (if SBV branches in cities or provinces are tasked with inspecting or overseeing credit institutions applying for refinancing or refinancing extension).

3. Within 05 business days of receipt of written requests for contribution of opinions from the Monetary Policy Department as referred to in clause 2 of this Article, the Bank Supervision and Inspection Agency, Department of Economic Sector Credit and SBV branches in cities or provinces where requesting credit institutions’ main offices are located (hereinafter referred to as SBV branches in cities or provinces) must send their opinions in writing to the Monetary Policy Department as to the followings:

a) Bank Supervision and Inspection Agency: Assessing whether credit institutions meet or fail to meet conditions for refinancing or refinancing extension as prescribed in clause 1 of Article 12 herein; giving opinions on applications for refinancing or refinancing extension submitted by credit institutions and on other matters (if any);

b) Department of Economic Sector Credit: Based on reports and documents submitted by credit institutions, giving opinions on whether credit institutions meet conditions for refinancing or refinancing extension as provided in Article 12 herein; giving opinions on applications for refinancing or refinancing extension submitted by credit institutions, and on other matters (if any);

c) SBV branches in cities and provinces: Assessing whether credit institutions meet or fail to meet conditions for refinancing or refinancing extension as prescribed in clause 1 of Article 12 herein; giving opinions on applications for refinancing or refinancing extension submitted by credit institutions and on other matters (if any);

4. Within 07 working days of receipt of all required opinions from the entities stipulated in clause 3 of this Article, and modifications, supplements or explanations (if any) from credit institutions or these entities, the Monetary Policy Department shall submit a general report to the SBV’s Governor to seek his/her decision whether refinancing or refinancing extension is granted to applicant credit institutions.

5. Within 20 business days of receipt of all required documents from credit institutions which are stipulated in clause 1 of this Article, and other written modifications, supplements or explanations (if any) from credit institutions, SBV shall issue its decision on whether refinancing or refinancing extension is granted to applicant credit institutions; in case of rejection, SBV shall have to send written documents clearly stating reasons for such rejection to applicant credit institutions.

6. Based on the decisions of SBV's Governor on grant of refinancing or refinancing extension to credit institutions and other related laws, Director of SBV’s Transaction Center or Director of SBV branch in a city or province shall sign contracts for refinancing, loan disbursement, extension or recovery of refinanced loan debts with applicant credit institutions.

Section 2. REFINANCING IN THE FORM OF ON-LENDING ON CREDIT-RELATED DOCUMENTS FOR THE PURPOSE OF LOAN SUPPORT FOR PROMOTED SECTORS OR INDUSTRIES

Article 16. Refinancing conditions

SBV shall consider issuing its decision on refinancing in the form of on-lending on credit-related documents to credit institutions fully meeting the following conditions:

1. They are not going into special administration or subject to early intervention regimes or measures against violations as prescribed in Article 11 herein.

2. They comply with prudential ratios prescribed in clause 1 of Article 130 in the (amended and supplemented) Law on Credit Institutions, and follow SBV’s instructions, within 12 consecutive months before the date of submission of their Applications for refinanced loans.

3. They have undertaken that they do not have or have already used up valuable papers mentioned in the list of valuable papers accepted for use in SBV's transactions as of the date of submission of their application forms for refinancing, and that loans mentioned in checklists of credit-related documents required for refinancing meet standards stipulated in Article 18 herein in full.

Article 17. Refinancing extension conditions

SBV shall consider issuing its decision on extension of refinancing in the form of on-lending on credit-related documents to credit institutions fully meeting the following conditions:

1. They are faced with payment difficulties.

2. They are not going into special administration or subject to early intervention regimes or measures against violations as prescribed in Article 11 herein.

3. They have undertaken that they do not have or have already used up valuable papers mentioned in the list of valuable papers accepted for use in SBV's transactions as of the date of submission of their application forms for refinancing extension, and that loans mentioned in checklists of credit-related documents required for refinancing extension meet standards stipulated in Article 18 herein in full.

Article 18. Standards for loans mentioned in checklists of credit-related documents

Loans mentioned in checklists of credit-related documents that credit institutions compile to apply for refinancing or extension of refinancing must fully meet the following standards:

1. They are loans used in promoted sectors or industries for purposes stated in Applications for refinancing submitted by credit institutions according to Appendix No. 01 hereto (in case of refinancing of loans), or for purposes of the existing loans (in case of extension of refinanced loans).

2. They must meet standards prescribed in clause 1 of Article 13 herein.

3. They are not used to serve other unspecified purposes.

4. On the date of submission of their application for refinancing or refinancing extension, the number of days left to maturity of these loans is at least 60 days greater than the requested maturity period of refinanced loan or the extended duration of refinanced loan.

Article 19. Refinance or extended refinance limits

1. The limit on refinance in the form of on-lending on credit-related documents shall be subject to SBV’s assessment and decision made on the basis of targets in administration of monetary policies over periods of time, but shall not exceed 60% of total outstanding principal of loans mentioned in checklists of credit-related documents required for application for refinancing permission.

2. Limits on extended refinances taken out in the form of on-lending on credit-related documents shall be subject to SBV’s assessment and decision made on the basis of payment capabilities of credit institutions, but shall not exceed 60% of total outstanding principal of loans mentioned in checklists of credit-related documents which are required for refinancing extension purposes.

Article 20. Procedures for pre-approval assessment of refinancing and refinancing extension

1. When wishing to receive a refinance, or extension of a refinance, taken out in the form of on-lending on credit-related documents, the applicant credit institution must send 1 set of application documents to SBV (via Monetary Policy Department). In particular, in case of application for a refinancing extension, that applicant credit institution must send their application documents to SBV at least 25 business days before the payment due date of the existing loan. If submitted documents are not sufficient as required by regulations in force, within 03 business days of receipt of these submitted documents, SBV (namely, Monetary Policy Department) must send the applicant credit institution a written request for any necessary modification or supplement.

a) Application package for refinancing of loans shall include the following documents:

(i) Application form for refinancing which is given in Appendix No. 01 hereto;

(ii) Detailed report on the following matters: Compliance with all conditions for refinancing which are referred to in Article 16 herein; current condition of lending in promoted sectors or industries corresponding to purposes of refinancing applications of credit institutions;

(iii) Checklist of credit-related documents required for application for refinancing which is given in Appendix No. 03 hereto (02 copies);

(iv) Data report which is given in Appendix No. 04 or 05 hereto;

b) Application package for refinancing of loans shall include the following documents:

(i) Application form for refinancing extension which is given in Appendix No. 02 hereto;

(ii) Detailed report on the following matters: Fulfillment of conditions for refinancing extension referred to in Article 17 herein; difficulties in payment capabilities of applicant credit institutions; measures already applied and planned to be applied to address difficulties in payment and solvency capabilities;

(iii) Checklist of credit-related documents required for application for refinancing extension which is given in Appendix No. 03 hereto (02 copies);

(iv) Data report which is given in Appendix No. 04 or 05 hereto.

2. Within 03 business days of receipt of all required documents from credit institutions which are prescribed in clause 1 of this Article, the Monetary Policy Department shall consult with the Bank Supervision and Inspection Agency, Department of Economic Sector Credit or SBV branches in cities or provinces (if SBV branches in cities or provinces are tasked with inspecting or overseeing credit institutions applying for refinancing or refinancing extension).

3. Within 07 business days of receipt of written requests for contribution of opinions from the Monetary Policy Department as referred to in clause 2 of this Article, the Bank Supervision and Inspection Agency, Department of Economic Sector Credit and SBV branches in cities or provinces must send their opinions in writing to the Monetary Policy Department as to the followings:

a) Bank Supervision and Inspection Agency: Assessing whether applicant credit institutions meet or fail to meet conditions prescribed in clause 1 and 2 of Article 16 herein (if they submit applications for refinancing), or conditions prescribed in clause 1 and 2 of Article 17 herein (if they submit applications for extension of refinancing); giving opinions on applications for refinancing or extension of refinancing submitted by credit institutions, and on other matters (if any);

b) Department of Economic Sector Credit: Providing data on outstanding balance of credit institution’s loans for promoted sectors or industries that Department of Economic Sector Credit is assigned to monitor and control; based on reports and documents of credit institutions, giving opinions on conditions for refinancing or extension of refinancing of applicant credit institutions according to Article 16 and 17 herein; giving opinions on applications for refinancing or extension of refinancing submitted by credit institutions, and on other matters (if any);

c) SBV branches in cities and provinces: Assessing whether applicant credit institutions meet or fail to meet conditions prescribed in clause 1 and 2 of Article 16 herein (if they submit applications for refinancing), or conditions prescribed in clause 1 and 2 of Article 17 herein (if they submit applications for extension of refinancing); giving opinions on applications for refinancing or extension of refinancing submitted by credit institutions, and on other matters (if any).

4. Within 10 working days of receipt of all required opinions from the entities stipulated in clause 3 of this Article, and modifications, supplements or explanations (if any) from credit institutions or these entities, the Monetary Policy Department shall submit a general report to the SBV’s Governor to seek his/her decision whether refinancing or refinancing extension is granted to applicant credit institutions.

5. Within 25 business days of receipt of all required documents from credit institutions which are stipulated in clause 1 of this Article, and other written modifications, supplements or explanations (if any) from credit institutions, SBV shall issue its decision on whether refinancing or refinancing extension is granted to applicant credit institutions; in case of rejection, SBV shall have to send written documents clearly stating reasons for such rejection to applicant credit institutions.

6. Based on the decisions of SBV's Governor on grant of refinancing or refinancing extension to credit institutions and other related laws, Director of SBV’s Transaction Center or Director of SBV branch in a city or province shall sign contracts for refinancing, loan disbursement, extension or recovery of refinanced loan debts with applicant credit institutions.

Chapter III

RESPONSIBILITIES OF CREDIT INSTITUTIONS AND SBV’S AFFILIATES

Article 21. Responsibilities of credit institutions

1. Implement responsibilities prescribed herein and in other relevant laws.

2. Provide SBV with documents and materials in a full, timely and accurate manner about refinancing or extension of refinancing in the form of on-lending on credit-related documents. Bear responsibility before laws on accuracy and legitimacy of provided documents and materials.

3. Assume responsibilities for fulfillment of conditions for refinancing or extension of refinancing prescribed in clause 2 of Article 12, clause 3 of Article 16 and clause 3 of Article 17 herein. Take responsibility for ensuring loans mentioned in checklists of credit-related documents required for refinancing or extension of refinancing meet regulations laid down in laws and standards prescribed herein.

4. During the period of application for refinancing or refinancing extension, credit institutions shall be responsible for updating information and data by using the Appendix No. 03 hereto (if there is any change in such information or data); sending timely reports to SBV (via Monetary Policy Department) for suspension of consideration of refinancing or refinancing extension in the event that these credit institutions no longer have demands for refinancing or refinancing extension.

5. Use refinanced loans for use as liquidity support for predetermined purposes; for repayment of debts incurred from refinanced loans in the form of on-lending on credit-related documents under the provisions of this Circular and refinancing agreements.

6. During the period of reception of refinanced loans or extension of refinanced loans granted in the form of on-lending on credit-related documents, credit institutions shall assume the following responsibilities:

a) Separately keep custody of and store credit-related documents required for refinancing or refinancing extension;

b) Prohibit using loans mentioned in checklists of credit-related documents required for refinancing or extension of refinancing for other unspecified purposes;

c) Monitor and assess standards of loans mentioned in checklists of credit-related documents required for refinancing or refinancing documents; within 03 working days after the date on which there is none of loans, outstanding principal on existing loans is reduced, or existing loans no longer meet standards prescribed in clause 1 and 2 of Article 13 herein (in case of refinancing as prescribed in clause 1 of Article 4 herein) or clause 1 and 2 of Article 18 herein (in case of refinancing as prescribed in clause 2 of Article 4 herein), credit institutions must replace existing loans and add more loans meeting standards to ensure that total outstanding principal on loans existing after such replacement or addition process is not less than total outstanding principal on loans mentioned in the checklist of credit-related documents annexed to the refinancing Decision or the Decision on extension of refinancing issued by SBV's Governor, and report to SBV (namely, Bank Supervision and Inspection Agency, Monetary Policy Department, Department of Economic Sector Credit, SBV’s Transaction Center, and SBV branches in cities or provinces where credit institutions receive refinanced loan disbursements).

7. On a weekly basis, within 02 initial working days of the week following the reporting week, they shall be responsible for sending written reports directly or by post to SBV (namely, Bank Supervision and Inspection Agency or SBV branches in cities or provinces that are tasked with inspecting and supervising credit institutions taking out refinanced loans) on use of refinanced loans for liquidity support according to the Appendix No. 08 hereto until refinanced loans are used up.

Article 22. Responsibilities of State Bank’s affiliates

1. Monetary Policy Department:

a) Act as a focal point tasked with submitting applications for refinancing or extension of refinancing in the form of on-lending on credit-related documents to SBV’s Governor to seek his approval in accordance with regulations laid down herein;

b) Act as a focal point tasked with reporting to SBV's Governor on difficulties that may arise during the process of refinancing in the form of on-lending on credit-related documents to seek his approval of actions against these difficulties;

c) Consolidate data on refinancing in the form of on-lending on credit-related documents which are collected from SBV's Transaction Center and SBV branches in cities or provinces and send a consolidated data report to SBV’s Governor within 05 working days of receipt of all reports from these entities until all outstanding loan debts no longer exist and there is none of changes in refinanced loans provided in the form of on-lending on credit-related documents.

2. Bank Supervision and Inspection Agency:

a) Give opinions on refinancing or extension of refinancing in the form of on-lending on credit-related documents under the provisions of this Circular;

b) Act as a focal point tasked with recommending SBV's Governor to consider deciding to implement measures referred to in point c of clause 4 of Article 8 herein;

c) In case of receiving notice from competent authorities or SBV branches in cities or provinces as provided in point dd of clause 5 of this Article; or after completion of inspections or assessments, if it is discovered that credit institutions commit any violation referred to in clause 1 and 2 of Article 11 herein, Bank Supervision and Inspection Agency shall be in charge of recommending SBV's Governor to send written notices of such violation to credit institutions, Monetary Policy Department, Department of Economic Sector Credit, SBV’s Transaction Center and SBV branches in cities or provinces. In detail, each written notice of violation must at least include such credit institution's violations and actions to be taken by SBV in accordance with this Circular;

d) Carry out assessment, inspection of and actions against violations, within their jurisdiction, which may arise from implementation of this Circular.

3. Department of Economic Sector Credit: Give opinions on refinancing or extension of refinancing in the form of on-lending on credit-related documents under the provisions of this Circular.

4. SBV’s Transaction Center:

a) Sign agreements on refinancing, containing basic information specified in Appendix No. 07 hereto; disbursement, extension of loans and recovery of refinance debts under the provisions of this Circular or Decision of SBV’s Governor on refinancing or extension of refinancing in the form of on-lending on credit-related documents to credit institutions and other provisions of related laws;

b) Instruct credit institutions to sign agreements on refinancing, disbursement and recovery of refinance debts according to the service procedures available on the SBV’s system;

c) Implement actions imposed on credit institutions as provided in point a and b of clause 4 of Article 8 herein;

d) Within duration of the first 07 working days of the month following the month when there are outstanding debts or any change in refinance in the form of on-lending on credit-related documents at SBV’s Transaction Center arises, send written documents stating refinance data to Bank Supervision and Inspection Agency, Monetary Policy Department and Department of Economic Sector Credit according to the Appendix No. 09 hereto;

dd) Convert outstanding refinance debts into outstanding special loan debts as provided in clause 3 of Article 23 herein.

5. SBV branches in cities and provinces:

a) Give opinions on refinancing or extension of refinancing in the form of on-lending on credit-related documents under the provisions of this Circular (if SBV branches in cities or provinces are tasked with inspecting and supervising credit institutions applying for refinancing or refinancing extension);

b) Sign agreements on refinancing, containing basic information specified in Appendix No. 07 hereto; disbursement, extension of loans and recovery of refinance debts under the provisions of this Circular or Decision of SBV’s Governor on refinancing or extension of refinancing in the form of on-lending on credit-related documents to credit institutions and other provisions of related laws;

c) Implement actions imposed on credit institutions as provided in point a and b of clause 4 of Article 8 herein;

d) Carry out assessment and inspection of and impose actions against violations, within their respective jurisdiction, that may arise from implementation of this Circular (if SBV branches in cities or provinces are tasked with inspecting or supervising credit institutions taking out refinanced loans);

dd) Inform Bank Supervision and Inspection Agency in writing in case where, after completion of inspection or assessment, it is discovered that credit institutions commit violations prescribed in clause 1 and 2 of Article 11 herein (if SBV branches in cities or provinces are tasked with inspecting or supervising credit institutions taking out refinanced loans);

e) Within duration of the first 07 working days of the month following the month when there are outstanding debts or any change in refinance in the form of on-lending on credit-related documents at SBV branches in cities or provinces arises, send written documents stating refinance data to Bank Supervision and Inspection Agency, Monetary Policy Department and Department of Economic Sector Credit according to the Appendix No. 09 hereto.

6. Finance – Accounting Department: Providing instructions on how to prepare accounting reports regarding refinancing in the form of on-lending on credit-related documents.

7. Information Technology Department:

a) Act as a focal point tasked with and cooperate with SBV’s Transaction Center and related entities in designing and installing software programs, and ensuring computer network infrastructure for refinancing in the form of on-lending on credit-related documents to credit institutions is operated in a stable, through, safe and confidential manner;

b) Instruct credit institutions to make internet connection to SBV in order to perform refinancing transactions in the form of on-lending on credit-related documents;

c) Provide instructions for grant and revocation of access encryption keys and digital signature encryption keys of credit institutions.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 23. Entry into force

1. This Circular shall enter into force on January 18, 2020.

2. The Circular No. 15/2012/TT-NHNN dated May 4, 2012 of SBV’s Governor, regulating SBV’s refinancing of loans in the form of on-lending on credit-related documents to credit institutions.

3. From the date of entry into force of this Circular, outstanding principal on refinancing of loans in the form of on-lending on credit-related documents of credit institutions already going into special administration which arises before the effective date of the Law on Amendments or Supplements to several Articles of the Law on Credit Institutions No. 47/2010/QH12 shall be converted into outstanding debts on special loans.

4. Loans refinanced in the form of on-lending on credit-related documents in which outstanding debts accrue until the effective date of this Circular shall be continued under refinancing decisions or agreements already in effect. Any amendment or supplement to these decisions or agreements shall be subject to regulations laid down herein.

Article 24. Implementation duties

Office Chief, Director of Monetary Policy Department, Heads of the State Bank’s affiliates, Directors of SBV branches in cities and provinces, Chairpersons of Management Boards, Chairpersons of Board of Directors, and General Directors (Directors) of credit institutions shall be responsible for implementing this Circular./.