CONDITIONS TO REFINANCE LOANS ON THE BASIS OF SPECIAL BONDS OF ASSETS MANAGEMENT COMPANY
Circular No. 20/2013/TT-NHNN dated September 09, 2013 of the State Bank of Vietnam regulating on refinancing loans on the basis of special bonds of Asset Management Company for Vietnamese Credit Institutions (VAMC)
According to this Circular, the State Bank will consider and decide to refinance when credit institutions (except for credit institutions with 100% foreign capital, joint-venture credit institutions) meet the following conditions: Being credit institutions as stipulated under Clause 1 Article 2 of this Circular, and not being under the special control; having legal ownership of special bonds unpaid by Asset Management Company for Vietnamese Credit Institutions); Setting up risk provision levels for special bonds as stipulated according to the Decree No. 53/2013/ND-CP of the Government and guidelines of the State Bank
Refinancing level for credit institutions on the basis of special bonds is decided by the State Bank Governor and it is based on the objectives of monetary policy, results of risk provision for special bonds and results of handling bad debts but it shall not exceed 70% of the value of special bonds. Overdue refinancing interest rate is equal to 150% of refinancing interest rate quoted in the credit contract between the State Bank and credit institution.
In this Circular, time for financing is under 12 months but it must not exceed the remaining time of special bonds. The State Bank shall consider and decide the extension of refinancing. Extension time for each time shall not exceed the time of the first refinancing of that refinancing account.
This Circular takes effect on September 15, 2013.
