Press Release on the issuance of Circular No.33/2016/TT-NHNN
The Governor of the State Bank of Vietnam (SBV) issued Circular No. 33/2016/TT-NHNN on December 27, 2016 to stipulate the ratio of the VAMC’s collection which is calculated on non-performing loans (NPLs) purchased in special bonds.
The Circular stipulates the collection ratio of the VAMC in line with regulations in Decree No.18/2016/ND-CP dated March 18, 2016 on revising a number of Decree No.53/2013/ND-CP dated May 18, 2013 on the establishment, organization and operations of VAMC.
The Circular includes 5 Articles with the following main components:
- Stipulating the VAMC’s collection ratios, including: (i) the ratio calculated on the amount of money collected from NPLs purchased in special bonds and (ii) the ratio of the remaining principal balance at the maturity of NPLs purchased in special bonds, which are recorded on the balance sheet of VAMC.
- Stipulating the authority, principle and basis for calculating the collection ratio; accordingly, the SBV decides collection ratios after reaching agreement with the Ministry of Finance.
- Stipulating orders for calculating collection ratios; accordingly, on March 31 of every fiscal year at the latest, the SBV Governor decides and announces collection ratios for the fiscal year to the VAMC and debt-selling credit institutions.
- The Circular will take effect from February 15, 2017 and replace Circular No. 20/2014/TT – NHNN on August 12, 2014 on the VAMC’s collection and advances for NPLs purchased in special bonds.
Translated by Le Hang