Circular No. 03/2023/TT-NHNN stipulates the suspension of the effectiveness of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN dated November 10, 2021 regarding the purchase and sale of corporate bonds by credit institutions and foreign bank branches.

CIRCULAR

Provision to suspend the effectiveness of Clause 11, Article 4Circular No. 16/2021/TT-NHNN dated November 10, 2021 of the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling corporate bonds

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Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular to suspend the effectiveness of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN dated November 10, 2021 of the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling corporate bonds (hereinafter referred to as Circular No. 16/2021/TT-NHNN).

Article 1. Suspend the effectiveness from April 24, 2023 until December 31, 2023 for the provisions at Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN.

During the period of suspending the effectiveness of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN as stipulated herein, credit institutions and foreign bank branches (hereinafter referred to as credit institutions) may repurchase corporate bonds not listed on the securities market or not registered for trading on the Upcom trading system (hereinafter referred to as unlisted corporate bonds) that credit institutions have sold and/or unlisted corporate bonds issued in the same batch/same issuance as the unlisted corporate bonds that credit institutions have sold when:

a) Meeting the provisions at Article 4 of Circular No. 16/2021/TT-NHNN;

b) The buyer of these corporate bonds from the credit institution pays the full purchase price of the corporate bonds at the time the credit institution enters into a sales contract with the buyer of the corporate bonds;

c) The issuing corporation of the corporate bonds is rated at the highest level according to the internal credit rating regulations of the credit institution at the latest time before the credit institution purchases the corporate bonds.

Article 2. Implementation clause

This Circular takes effect from April 24, 2023.

This Circular takes effect from December 25, 2025/.

The Director of the Office, Heads of Departments under the Monetary Policy Department, Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam Branches in provinces and centrally governed cities, and credit institutions are responsible for implementing this Circular./.