PROHIBIT BANK FROM PURCHASING CORPORATE BONDS TO RESTRUCTURE DEBTS OF ENTERPRISE
The State Bank of Vietnam issues the Circular No. 15/2018/TT-NHNN on June 18, 2018 n amending the Circular No. 22/2016/TT-NHNN dated June 30, 2016 of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks.
This Circular prescribes credit institutions and branches of foreign banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer. This Circular also annul provision on types of bonds which enterprise are allowed to purchase.
Concurrently, this Circular amends internal regulation on purchase of corporate bonds: credit institutions, branches of foreign banks must have these following contents:
- Regulations on internal control of purchase of corporate bonds, especially bonds issued for implementation of programs/ projects in sectors posing potential risks…;
- Specific regulations on sectors posing potential risks and credit/ investment policies in these sectors.
This Circular takes effect on August 02, 2018.
