Press Release on issuance of Circular No.18/2015/TT – NHNN
The Government issued Decree No. 34/2015/NĐ-CP on March 31, 2015 on revising several articles of Decree No. 53/2013/NĐ-CP dated May 18, 2013 on the establishment, organization and operations of Vietnam Asset Management Company (VAMC). Implementing regulations stipulated in Decree No. 34/2015/NĐ-CP, and basing on the scheme of refinancing instrument utilization of the State Bank of Vietnam (SBV), the SBV Governor issued Circular No. 18/2015/TT – NHNN on October 22 on refinancing on the basis of VAMC’s special bonds. This Circular replaces Circular No. 20/2013/TT-NHNN on September 9, 2013 on refinancing on basis of special bonds of VAMC.
The Circular includes 3 chapters and 16 articles stipulating such substances as purposes, conditions of refinancing, level of refinancing, interest rate, maturity for refinancing, procedures for refinancing, payment of refinancing loans as well as responsibilities of credit institutions, VAMC and SBV entities in the process of refinancing on basis of VAMC’s special bonds. Accordingly, refinancing interest rate on basis of VAMC’s special bonds is decided by the Prime Minister; level of refinancing is decided by the SBV Governor in accordance with the objective of monetary policy management, the total denomination of special bonds, the result of risk provisioning for special bonds and the result of resolving NPLs (not exceed 70% of the total denomination of special bonds). For credit institutions being implementing approved plan on restructuring, the level of refinancing does not exceed 100% of the total denomination of special bonds.
The Circular will take effect from December 10, 2015.
Translated by DH