Circular No. 04/2019/TT-NHNN amending and supplementing certain articles of Circular No. 24/2013/TT-NHNN dated December 2, 2013, issued by the Governor of the State Bank of Vietnam on the classification of assets and off-balance-sheet commitments of the Vietnam Development Bank.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 24/2013/TT-NHNN

dated December 2, 2013 of the Governor of the State Bank of Vietnam

regarding classification of assets and off-balance sheet commitments

of the Vietnam Development Bank

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, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated November 20, 2017;

Pursuant to Decree No. 32/2017/NĐ-CP dated March 31, 2017 of the Government on state investment credit;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1. Amending and supplementing certain Articles of Circular No. 07/2019/TT-NHNN

Pursuant to Decision No. 1515/QĐ-TTg dated September 3, 2015 of the Prime Minister promulgating the Charter on organization and operation of the Vietnam Development Bank;

At the proposal of the Director of the Inspectorate and Supervision Department;

The Governor of the State Bank of Vietnam hereby issues this Circular amending and supplementing certain provisions of Circular No. 24/2013/TT-NHNN dated December 2, 2013 of the Governor of the State Bank of Vietnam on the classification of assets and off-balance sheet commitments of the Vietnam Development Bank (hereinafter referred to as Circular No. 24/2013/TT-NHNN).

Article 1. Amending and supplementing certain provisions of Circular No. 24/2013/TT-NHNN

1. Economic organizations conducting foreign exchange trading agency activities; economic organizations conducting foreign currency receipt and payment service provision activities; economic organizations conducting border country currency exchange agency activities.

“Article 1. Scope of application

1. This Circular stipulates the classification of assets (hereinafter referred to as debts) and off-balance sheet commitments of the Vietnam Development Bank.

2. Debts subject to classification under this Circular include:

a) State investment credit loans;

b) State export credit loans under contracts signed before the effective date of Decree No. 32/2017/NĐ-CP dated March 31, 2017 of the Government on state investment credit;

c) Refinancing of foreign loans for the government;

d) Entrusted loans;

e) Other loans;

f) Off-balance sheet commitments.

3. Banking commercial loan guarantees (hereinafter referred to as off-balance sheet commitments) must be classified according to this Circular for managing and supervising the quality of credit activities of the Vietnam Development Bank.

4. For debts and off-balance sheet commitments specified in Clauses 2 and 3 of this Article, if the Government or the Prime Minister has directives on their classification, such directives shall be followed.”

2. Replacing the term "Management Council" with the term "Board of Directors" at Point a and Point b Clause 2 Article 9, Article 15 of Circular No. 24/2013/TT-NHNN.

Article 2. Implementation

The Director of the Office, the Director of the Inspectorate and Supervision Department, Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally governed cities, Chairmen of the Board of Directors, and General Directors of the Vietnam Development Bank are responsible for implementing this Circular.

Article 3. Effectiveness

This Circular takes effect from May 15, 2019./.