Implementing the assigned tasks in Decision No.58/2013/QD – TTg, dated October 15th 2013 on the establishment, organization and operation of Credit Guarantee Funds for small and medium enterprises (SMEs), the State Bank of Vietnam (SBV) issued Circular No. 05/2015/TT- NHNN on guiding credit institutions in coordination with the Credit Guarantee Fund in providing loans with guarantee of the Fund in accordance with Decision No. 58/2013/QD – TTg, dated October 15th2013.
Circular No. 05/2015/TT- NHNN includes 11 articles as follows:
- Lending principles: credit institutions are required to comply with applicable laws on providing loans by credit institutions to their customers and other regulations as stipulated in the Circular.
- Cooperation agreement: before signing credit contracts, credit institutions are required to sign cooperation agreements with the Credit Guarantee Fund to outline necessary the substance relating to the lending-guarantee process.
- Regulations on the transfer of mortgage asset: Credit institutions, the Credit Guarantee Fund and borrowers will sign an agreement document to ensure that lenders have the right to receive and utilize mortgage assets if the Credit Guarntee Fund refuses to implement the guarantee obligation in line with the Circular and relevant regulations.
- Other substances of cooperation: guarantee obligation implementation, responsibilities of lenders.
Circular No. 05/2015/TT- NHNN will take effect from June 18, 2015.
Translated by DH