Thông tư 01/2016/TT-NHNN

CIRCULAR

GUIDANCE ON POLICIES ON GRANTING LOANS TO DEVELOP SUPPORTING  INDUSTRIES

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

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

Pursuant to the Decree No. 156/2013/ND-CP on functions, tasks, entitlement and the organizational structure of the State Bank of Vietnam dated November 11, 2013 by the Government;

Pursuant to the Decree No. 111/2015/ND-CP on the development of supporting industry;

At request of the Director of the Credit Department of Economic Sectors;

The Governor of the State Bank of Vietnam issues this Circular providing guidance on granting loans to supporting industry under the Decree No.111/2015/ND-CP on the development of supporting industry dated November 03, 2015.

Article 1. Scope

1. This Circular provides guidance on the grant of loans to develop supporting industries under the Decree No.111/2015/ND-CP on the development of supporting industry dated November 03, 2015(hereinafter referred to as the Decree No.111/2015/ND-CP).

2. The investment loans granted to projects for manufacturing of supporting products specified on the List of prioritized supporting products (hereinafter referred to as the List) stipulated in the Decree No. 111/2015/ND-CP shall not be governed by this Circular.

Article 2. Regulated entities

1. Credit institutions and branches of foreign banks that grant loans to projects for manufacturing of supporting  products on the List promulgated in Article 11 of Decree No.111/2015/ND-CP (hereinafter referred to as “projects for manufacturing of prioritized supporting products”).

2. Any organization and individual wishing to take loans to invest in projects for manufacturing of prioritized supporting  products.

3.  Any organization and individual engaging in granting loans for the development of supporting industries prescribed in the Decree No.111/2015/ND-CP.

Article 3. Policies on granting loans to projects for manufacturing of prioritized supporting products.

1. Credit institutions and branches of foreign banks shall grant short-term VND loans to projects for manufacturing of prioritized supporting products at a short-term interest rate not exceeding the maximum interest rate of short-term VND loans granted to borrowers working in fields prescribed by the Governor of the State Bank of Vietnam at that period.

2. Every small and medium enterprise (SMEs) taking loans guaranteed by credit guarantee institutions under the policy on investment in projects for manufacturing of prioritized  supporting products from credit institutions are entitled to consider granting a loan of up to 70% of the total invested capital provided that such enterprise satisfies requirements stipulated in point a, clause 2, Article 12 of Decree No. 111/2015/ND-CP besides  incentives prescribed in Clause 1 of this Article.

Article 4. Rules for lending

1. Projects for manufacturing of prioritized  supporting products  that are granted incentives stipulated in clause 1 and clause 2, Article 3 hereof are the projects to which incentives are certified under Article 11 of the Decree No. 111/2015/ND-CP.

2. Credit institutions and branches of foreign banks shall examine, verify and consider granting loans to projects for manufacturing of prioritized supporting products prescribed in clause 1 and clause 2, Article 3 hereof  under applicable laws and shall be responsible for their decisions on granting loans.

Article 5. Credit guarantee institutions for SMEs

Credit guarantee institutions for  SMEs mentioned in clause 2, Article 3 hereof includes:

1. Credit guarantee funds for the establishment and operation of SMEs  under the Decision No. 58/2013/QD-TTg on the establishment, organization and operation of Credit Guarantee Funds for SMEs  dated October 15, 2013 by the Prime Minister.

2. The Vietnam Development Bank granted guarantees under the Decision No. 03/2011/QD-TTg providing regulations on grant of guarantees to SMEs taking loans from commercial banks dated October 01, 2011 by the Prime Minister.

3. Other organizations that are allowed to grant guarantees to SMEs taking loans from commercial banks under applicable laws.

Article 6. Debt classification, contingency and risk settlement

The credit institutions and branches of foreign banks shall classify types of debts, extend debt maturity, carry forward overdue debts, set up and use contingencies for loans granted to projects for manufacturing of prioritized  supporting products  in accordance with applicable laws of the State Bank of Vietnam .

Article 7. Responsibilities of borrowers

1. Provide adequate and reliable information and documents related to their loans and be responsible for the accuracy of the information and documents submitted to the credit institutions or branches of foreign banks.

2. Use their loans in right manners and fully repay both the principal and interest on the due date stipulated in the signed credit contract; deliver the commitments specified in the credit contract and comply with relevant provisions of laws.

Article 8. Responsibilities of credit institution and branches of foreign banks

1. Credit institutions and branches of foreign banks granted loans for the purpose of  developing supporting industry shall comply with provisions hereof, regulations on grant of loans, regulations on credit limits and prudential ratios of credit institutions and other relevant laws.

2. The credit institution or branch of a foreign bank that having loan balance in respect of supporting industry development shall submit a quarterly report on loans granted to supporting industries using forms 01 and 02 hereof to the Credit Department of Economic Sectors and Bank Supervision and Inspection Agency –State Bank of Vietnam  by the 10^th of the month succeeding the reported month and shall be responsible for the adequacy, reliability and accuracy of reported information and figures.

Article 9. Responsibilities of affiliates of the State bank of Vietnam

1. Credit Departments of Economic Sectors;

a) Perform as the focal point to supervise the lending activities of credit institutions and branches of foreign banks under provisions hereof.

b) Take charge of and cooperate with relevant agencies to deal with issues arising during the implementation of this Circular.

2. Departments of Monetary Policies:

Advise the Governor of the State bank on the determination of short-term VND interest rates  at specific periods as prescribed in  clause 1, Article 3 hereof.

3. Banking Supervision and Inspection Agencies:

a) Inspect, examine and supervise the grant of loans of credit institution and branches of foreign banks  within the jurisdiction;

b) Take charge of and cooperate with Credit Departments of Economic Sectors and relevant agencies to deal with issues arising during the implementation of this Circular.

4. Branches of the State bank of centrally-affiliated cities and provinces

a) Supervise the grant of loans to supporting industries by credit institutions and branches of foreign banks in order to implement policies on development of supporting industries within the province.

b) Cooperate with regulatory bodies of the province to deal with issues arising during the grant of loans to develop supporting industries within the province.  Promptly report issues beyond their jurisdiction of the Banking Supervision and Inspection agency shall be promptly reported to the People’s Committees of the province and Credit Department of economic sectors – State bank of Vietnam.

Article 10. Entry into force

1. This Circular enters into force from February 22, 2016.

2. Loan agreements concluded before the effective date of this Circular shall follow the mutually agreed terms to the expiry of the loan agreements. Adjustments and supplements to loan agreements shall be made in accordance with provision hereof.

Article 11. Implementation organizations

Chiefs of Office, Directors of Credit Departments of Economic Sectors and Heads of agencies affiliated to the State bank of Vietnam , Chairpersons of the Executive Board, Chairpersons of the Board of members, General Directors (Directors) of credit institutions and branches of foreign banks shall be responsible for the implementation of this Circular.