Circular No. 08/2021/TT-NHNN on special loans for credit institutions under special control

CIRCULAR

Provisions on special loans for

credit institutions under special control

 

Pursuant to the Law on Credit Organizations dated June 16, 2010;

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

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.

The Governor of the State Bank of Vietnam issues the Circular stipulating provisions on special loans for credit institutions under special control.

 

PART I

GENERAL PROVISIONS

 

Article 1. Scope of Application

This Circular stipulates provisions on special loans of the State Bank of Vietnam (hereinafter referred to as the State Bank), the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, and other credit institutions for credit institutions under special control.

Article 2. Scope of Application

1. Credit institutions.

2. The Deposit Insurance Corporation of Vietnam.

3. Other organizations and individuals related to special loans for credit institutions under special control.

Article 3. Explanation of terms

In this Circular, the following terms are understood as follows:

1. Restructuring plan is one of the plans prescribed in Clause 35, Article 4 of the Law on Credit Institutions (amended and supplemented).

2. Transfer plan is the plan prescribed in Clause 3, Article 3 of the Law amending and supplementing certain articles of the Law on Credit Institutions (hereinafter referred to as Law No. 17/2017/QH14).

3. Special borrower (hereinafter referred to as the borrower) is a credit institution under special control borrowing special loans from the State Bank, the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, and other credit institutions.

4. Special lender (hereinafter referred to as the lender) is the State Bank, the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, and other credit institutions lending special loans to credit institutions under special control.

5. Preferential interest rate on special loans (hereinafter referred to as preferential interest rate) is a lower interest rate than the rediscount rate published by the State Bank during each period at the time of disbursement and extension of special loans.

6. Branch of the State Bank in province/city is the branch of the State Bank in the province/city where the credit institution under special control has its main office.

Article 4. Cases of special loans

1. The State Bank provides special loans to credit institutions under special control using funds from performing central bank functions regarding currency issuance in the following cases:

a) Providing special loans to support liquidity for credit institutions when they have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system during the period of special control of credit institutions, including cases where credit institutions are implementing approved restructuring plans and transfer plans;

b) Providing special loans with preferential interest rates up to 0% to support recovery for commercial banks, rural credit banks, finance companies, and microfinance organizations according to approved recovery plans;

c) Providing special loans with preferential interest rates up to 0% to support recovery for commercial banks according to approved mandatory transfer plans;

d) Providing special loans with preferential interest rates up to 0% for commercial banks that were compulsorily purchased before the Law No. 17/2017/QH14 took effect, as stipulated in Clause 2, Article 3 of Law No. 17/2017/QH14 (hereinafter referred to as the Prime Minister's Decision);

đ) Providing special loans with preferential interest rates up to 0% for commercial banks that were compulsorily purchased before the Law No. 17/2017/QH14 took effect after being transferred according to approved transfer plans.

2. The Deposit Insurance Corporation of Vietnam provides special loans to credit institutions under special control in the following cases:

a) Providing special loans to support liquidity for credit institutions when they have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system during the period of special control of credit institutions, including cases where credit institutions are implementing approved restructuring plans and transfer plans;

b) Providing special loans according to the decision of the State Bank with preferential interest rates up to 0% to support liquidity for finance companies, people's credit funds, and microfinance organizations from the Operational Reserve Fund when these entities have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system before the approval of restructuring plans;

c) Providing special loans with preferential interest rates up to 0% to support recovery for finance companies, people's credit funds, and microfinance organizations from the Operational Reserve Fund according to approved recovery plans.

3. The Vietnam Rural Credit Bank provides special loans to credit institutions under special control in the following cases:

a) Providing special loans to support liquidity for credit institutions when they have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system during the period of special control of credit institutions, including cases where credit institutions are implementing approved restructuring plans and transfer plans;

b) Providing special loans according to the decision of the State Bank with preferential interest rates up to 0% to support liquidity for people's credit funds from the System Safety Guarantee Fund when these funds have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system before the approval of restructuring plans;

c) Providing special loans with preferential interest rates up to 0% to support recovery for people's credit funds from the System Safety Guarantee Fund according to approved recovery plans.

4. Other credit institutions provide special loans to credit institutions under special control in the following cases:

a) Providing special loans to support liquidity for credit institutions when they have a risk of losing their ability to pay or are in a state of losing their ability to pay, threatening the stability of the system during the period of special control of credit institutions, including cases where credit institutions are implementing approved restructuring plans and transfer plans;

b) Providing special loans to support recovery for credit institutions according to approved recovery plans and mandatory transfer plans.

Article 5. Principles for special loans and handling of special loans

1. For special loans specified in points b, c, d, đ Clause 1, point c Clause 2, point c Clause 3, point b Clause 4 Article 4 of this Circular, the amount of the special loan, the purpose of using the special loan, collateral for the special loan, interest rate on the special loan, term of the special loan, repayment of the special loan, waiver or reduction of interest on the special loan, handling of the special loan that has been granted (including extension of the special loan, interest rate on overdue principal of the special loan) shall be carried out according to the decision of the Prime Minister, restructuring plan, transfer plan that have been approved.

2. The State Bank's special loans with preferential interest rates down to 0% shall be decided by the Prime Minister.

3. For special loans specified in point a Clause 1, point b Clause 2, point b Clause 3 Article 4, Article 6 of this Circular, they shall be implemented according to the provisions of this Circular; for contents of special loans that have been decided by the Prime Minister or approved in the restructuring plan, transfer plan, they shall be carried out according to the decision of the Prime Minister, restructuring plan, transfer plan that have been approved.

4. For special loans specified in point a Clause 2, point a Clause 3, point a Clause 4 Article 4 of this Circular, the amount of the special loan, the purpose of using the special loan, collateral for the special loan, interest rate on the special loan, term of the special loan, repayment of the special loan, waiver or reduction of interest on the special loan, handling of the special loan that has been granted (including extension of the special loan, interest rate on overdue principal of the special loan) shall be carried out according to the agreement between the lender and the borrower.

5. The currency for special loans is the Vietnamese Dong.

6. Acceptance and handling of collateral shall be carried out according to the provisions of this Circular and the provisions of the law on secured transactions.

Article 6. Conversion of rediscount loans into special loans

1. From the date the State Bank places a credit institution under special supervision, rediscount loans to that credit institution shall be converted into special loans as follows:

a) In cases where the balance of rediscount loans is still within the due period, the balance of principal rediscount loans shall be converted into the balance of principal special loans, the balance of interest rediscount loans shall be converted into the balance of interest special loans, the due date of the special loan shall be the due date of the rediscount loan, the interest rate on the special loan shall be equal to the interest rate on the rediscount loan;

b) In cases where the special loan is extended, the interest rate on the extended special loan shall be equal to the rediscount rate announced by the State Bank during each period at the time the special loan is extended;

c) In cases where the balance of rediscount loans is overdue, the balance of overdue principal rediscount loans shall be converted into the balance of overdue principal special loans, the balance of unpaid interest rediscount loans (including the balance of accrued interest arising from the amount of rediscount funds that the credit institution must repay according to regulations but has not been repaid on time) shall be converted into the balance of overdue interest special loans, the interest rate on overdue principal special loans shall be equal to the interest rate on overdue principal rediscount loans, the application of interest rate on overdue interest special loans shall be handled as for overdue interest rediscount loans.

2. Within 15 working days from the date the rediscount loan is converted into a special loan, the credit institution must complete the implementation of the provisions of point a Clause 4 Article 12 of this Circular so that the total value of qualified collateral (hereinafter referred to as qualified collateral) is not less than the balance of principal rediscount loans converted into the balance of principal special loans as stipulated in point a Clause 1 of this Article.

3. The conversion of rediscount loans into special loans is regulated in the Decision of the State Bank placing credit institutions under special supervision.

Article 7. Authority to Sign Documents in Special Loan Application Files, Special Loan Extension Application Files, and Special Loan Contracts

The authority to sign documents in special loan application files, special loan extension application files, and special loan contracts on the part of the borrower shall be exercised by the legal representative of the borrower.

 

Chapter II

SPECIFIC PROVISIONS

 

3. Amend Clause 3 Article 2 as follows:Article 8. Purpose of Using Special Loans

1. The borrower may only use the special loan as specified in point a Clause 1, point b Clause 2, and point b Clause 3 of Article 4 of this Circular to pay out deposits of individual depositors at the borrower; the use of special loans to pay out deposits of other entities shall be decided by the Governor of the State Bank of Vietnam in each specific case.

2. The entities eligible for payment as stipulated in Clause 1 of this Article do not include:

a) Related parties of credit institutions as defined in Clause 28 of Article 4 of the Law on Credit Institutions (amended and supplemented) and other relevant laws;

b) Managers of credit institutions;

c) Related parties of managers, directors, shareholders with a stake of 5% or more of the charter capital or voting shares of credit institutions as defined in Clause 28 of Article 4 of the Law on Credit Institutions (amended and supplemented) and other relevant laws.

Article 9. Amount of Special Loans

The amount of special loans in cases specified in point a Clause 1, point b Clause 2, and point b Clause 3 of Article 4 of this Circular shall be examined and decided by the State Bank of Vietnam based on the ability to pay of the credit institution under special control.

Article 10. Term of Special Loans

The term of special loans in cases specified in point a Clause 1, point b Clause 2, and point b Clause 3 of Article 4 of this Circular shall be examined and decided by the State Bank of Vietnam but shall not exceed 12 months.

Article 11. Interest Rates

1. For special loans as specified in point a Clause 1 of Article 4 of this Circular:

a) The interest rate for special loans and extended special loans shall be equal to the rediscount rate published by the State Bank of Vietnam during the period when the special loan is disbursed or extended;

b) The interest rate for overdue principal of special loans shall be 130% of the interest rate for timely special loans at the time of becoming overdue;

c) No interest shall be applied to overdue interest.

2. For special loans as specified in point b Clause 2 and point b Clause 3 of Article 4 of this Circular:

a) The interest rate for special loans and extended special loans shall be a preferential rate up to 0% as decided by the State Bank of Vietnam.

b) The interest rate for overdue principal of special loans shall be 130% of the interest rate for timely special loans at the time of becoming overdue;

c) No interest shall be applied to overdue interest.

Article 12. Collateral for Special Loans Examined and Decided by the State Bank of Vietnam

1. In the case of special loans as specified in point a Clause 1, point b Clause 2, point b Clause 3 of Article 4, and point a Clause 1 of Article 6 of this Circular, the borrower must use collateral in the following priority order:

a) Pledge: State Bank bills, government bonds (including treasury bills, treasury bonds, central government construction bonds, national construction bonds, government bonds issued by the Vietnam Development Bank (formerly the Development Support Fund) designated for issuance by the Prime Minister), government-guaranteed bonds payable at 100% of their face value and interest upon maturity, local government bonds included in the list of securities that can be used in transactions with the State Bank;

b) Pledge of bonds issued by commercial banks held by the state with over 50% of the charter capital (excluding commercial banks compulsorily purchased);

c) Pledge of bonds issued by non-special controlled credit institutions (excluding commercial banks specified in point b of this Clause) and other enterprises;

d) Mortgage of claims arising from loans granted by the borrower to customers (excluding credit institutions).

2. Value of Collateral:

a) The value of collateral as specified in Clause 1 of this Article shall be determined according to Appendix IV attached to this Circular;

b) The converted value of each item of collateral for special loans shall be calculated using the following formula:

Where:

TS: Converted value of each item of collateral;

GT: Value of each item of collateral as determined according to Appendix IV attached to this Circular;

TL: Conversion ratio corresponding to each item of collateral.

c) The conversion ratio of collateral (TL) shall be determined as follows:

(i) For securities as specified in point a Clause 1 of this Article, TL shall be the minimum ratio between the value of the securities and the amount of secured loans pledged with the State Bank of Vietnam for credit institutions as prescribed by the State Bank of Vietnam in each period;

(ii) For collateral as specified in points b, c, d Clause 1 of this Article, TL shall be 170%.

d) At the time of applying for a special loan or extending a special loan, the credit institution must ensure that the total converted value of qualified collateral is not less than the amount requested for the special loan or the extension of the special loan.

3. If the collateral as specified in points c and d Clause 1 of this Article does not meet the conditions stipulated in Clauses 2 and 3 of Article 13 of this Circular, leading to the total converted value of qualified collateral being lower than the outstanding principal of the special loan, the borrower must complete the requirements set forth in point a Clause 4 and point a Clause 5 of this Article so that the total converted value of qualified collateral is not lower than the outstanding principal of the special loan within 10 working days from the date the total converted value of qualified collateral is lower than the outstanding principal of the special loan.

4. For special loans as specified in point a Clause 1 of Article 4 and point a Clause 1 of Article 6 of this Circular, the supplementation and replacement of collateral as specified in Clause 2 of Article 6 and Clause 3 of this Article shall be carried out as follows:

a) The borrower shall submit a written request to supplement or replace the collateral (which has been approved by the Special Supervisory Board), specifying the proposed additional collateral, the proposed replaced collateral, and send it to the entity currently accounting for the special loan (the State Bank branch at provincial or municipal level or the State Bank Trading Department).

b) Based on the borrower's written request as stipulated in point a of this Clause, the entity currently accounting for the special loan shall implement or coordinate with relevant entities to carry out procedures to supplement or replace the collateral; in the case of replacement, it must ensure that the reduction of insufficiently qualified collateral can only be carried out after sufficient collateral has been supplemented.

5. For the special loans specified in points b of Clause 2 and point b of Clause 3, Article 4 of this Circular, the supplementation or replacement of collateral as stipulated in Clause 3 of this Article shall be implemented as follows:

a) The borrower shall submit a written request to supplement or replace the collateral (which has been approved by the Special Supervisory Board) to the lender, specifying the proposed additional collateral and the proposed replaced collateral.

b) Based on the borrower's written request as stipulated in point a of this Clause, the lender shall implement the supplementation or replacement of the collateral; in the case of replacement, it must ensure that the reduction of insufficiently qualified collateral can only be carried out after sufficient collateral has been supplemented. The lender shall notify the Special Supervisory Board, the State Bank (the Banking Inspection and Supervision Authority, the State Bank branch at provincial or municipal level, the Monetary Policy Department) in writing about the supplementation or replacement of the collateral.

Article 13. Conditions for Collateral

1. Valuable papers specified in points a and b of Clause 1, Article 12 of this Circular must meet the following conditions:

a) Issued in Vietnamese dong;

b) Currently deposited with the State Bank, including direct deposit with the State Bank or deposit in the customer account of the State Bank at the Vietnam Securities Depository and Central Counterparty Corporation;

c) Not issued by the borrower;

d) The remaining term of the valuable paper must be longer than the term of the special loan.

2. Bonds specified in point c of Clause 1, Article 12 of this Circular must meet the following conditions:

a) The conditions prescribed in Clause 1 of this Article;

b) Currently listed in accordance with the law;

c) Have collateral and collateral value according to the internal assessment result of the credit institution at the time closest to the time of submitting the special loan application, the application for extension of the special loan, or the time of converting the refinancing loan into a special loan, or the time of assessing the collateral according to the internal regulations of the credit institution during the period of the special loan not lower than the face value of the bond.

3. The loan specified in point d of Clause 1, Article 12 of this Circular must meet the following conditions:

a) In Vietnamese dong;

b) Classified into Group 1 (qualified loans) according to the State Bank's regulations on classifying credit assets of credit institutions, excluding loans restructured in terms of repayment period according to the State Bank's regulations;

c) Secured by collateral in full value of the loan and collateral value according to the internal assessment result of the credit institution at the time closest to the time of submitting the special loan application, the application for extension of the special loan, or the time of converting the refinancing loan into a special loan, or the time of assessing the collateral according to the internal regulations of the credit institution during the period of the special loan not lower than the outstanding balance of the loan.

Article 14. Extension of Special Loans

In cases where credit institutions request an extension of special loans as stipulated in Point a Clause 1, Point b Clause 2, Point b Clause 3 Article 4, Point a Clause 1 Article 6 of this Circular before having a restructuring plan or transfer plan approved, or changing such plans without approval:

1. The State Bank shall consider extending the special loan based on the credit institution's repayment capacity or the restructuring plan for the credit institution as prescribed in Law No. 17/2017/QH14 (hereinafter referred to as the restructuring plan) submitted by the State Bank to the Government or the Prime Minister, or the restructuring plan decided by the Government, the Prime Minister, or the State Bank, or the restructuring plan or transfer plan submitted by the State Bank to the Government or the Prime Minister.

2. Each extension period shall be less than twelve months.

Article 15. Repayment of Special Loans

1. When a special loan becomes due, the borrower must repay the principal and interest of the special loan to the lender.

2. The borrower may repay the special loan ahead of schedule.

3. In cases of special loans as stipulated in Point a Clause 1, Point b Clause 2, Point b Clause 3 Article 4, and Article 6 of this Circular, the borrower must repay the debt under the following circumstances:

a) If the borrower has funds recovered from the right to claim debts secured by assets for the special loan (hereinafter referred to as recovered debt funds), within five working days at the beginning of each month, the borrower must repay the outstanding principal of the special loan with an amount equal to the total recovered debt funds generated in the preceding month according to the promissory note signed earliest;

b) If the borrower fails to supplement or replace collateral as prescribed in Clause 2 Article 6 and Clause 3 Article 12 of this Circular, within three working days following the deadline for supplementing or replacing collateral as prescribed in Clause 2 Article 6 and Clause 3 Article 12 of this Circular, the borrower must repay the outstanding principal of the special loan with a minimum amount equal to the difference between the outstanding balance of the special loan and the total converted value of the eligible collateral;

c) For special loans as prescribed in Article 6 of this Circular, in addition to repaying the debt as prescribed in Points a and b of this Clause, the credit institution must also repay the debt according to the loan agreement for refinancing capital already signed.

4. For special loans as prescribed in Point a Clause 1, Point b Clause 2, Point b Clause 3 Article 4 of this Circular, if it is discovered that the special loan proceeds were not used for their intended purpose, within seven working days from the date the State Bank issues a notification of violation as prescribed in Point d Clause 2, Point i Clause 4 Article 26 of this Circular (hereinafter referred to as the date the State Bank issues the notification), the borrower must repay the lender the following amounts:

a) The entire principal and interest of the special loan;

b) The amount of interest arising on the principal used for an unintended purpose at an interest rate of 130% of the rediscount rate announced by the State Bank during the relevant period on the date the State Bank issues the notification, from the date the borrower receives the disbursed funds used for an unintended purpose until the date the State Bank issues the notification.

5. For special loans as prescribed in Point a Clause 1 Article 4, Point a Clause 1 Article 6 of this Circular, if the borrower does not repay the debt as prescribed in Clause 1 of this Article and is not granted an extension, or does not repay the debt as prescribed in Clause 4 of this Article and the outstanding balance of the special loan as prescribed in Point c Clause 1 Article 6 of this Circular, the measures taken by the State Bank are as follows:

a) Transfer the outstanding balance of the special loan to overdue status and apply the interest rate prescribed in Point b Clause 1 Article 11 of this Circular to the outstanding principal of the special loan not repaid on time according to the State Bank's regulations on methods of calculating and accounting for interest income and expenditure in deposit-taking and lending activities between the State Bank and credit institutions (excluding the outstanding balance of the special loan as prescribed in Point c Clause 1 Article 6 of this Circular);

b) Deduct from the borrower’s account at the State Bank to recover the loan (principal and interest) after notifying the credit institution about the deduction from the borrower’s account to recover the loan;

c) Require the borrower to transfer ownership of the collateral securities as prescribed in Point a Clause 1 Article 12 of this Circular to the State Bank;

d) Implement measures to dispose of the collateral as prescribed in Point a, b, c Clause 1 Article 12 of this Circular according to the law to recover the loan (principal and interest);

đ) Recover the loan (principal and interest) from the proceeds obtained by the borrower from disposing of the collateral as prescribed in Point b, c, d Clause 1 Article 12 of this Circular;

e) Recover the loan (principal and interest) from other sources of the borrower (if any).

6. Measures taken by the State Bank when the borrower does not repay the special loan as prescribed in Clause 3 of this Article:

a) Apply an interest rate of 130% of the special loan interest rate to the outstanding principal of the special loan required to be repaid as prescribed in Clause 3 of this Article but not yet repaid (hereinafter referred to as the outstanding principal not yet repaid) during the period from the day following the expiration of the repayment deadline as prescribed in Clause 3 of this Article to the day the borrower repays the outstanding principal not yet repaid;

b) Deduct from the borrower’s account at the State Bank to recover the amount the borrower must pay (including the outstanding principal not yet repaid and the interest prescribed in Point a of this Clause) within five working days from the date of receiving a written notice from the Special Supervisory Board as prescribed in Clause 5 Article 25 of this Circular;

c) Recover the loan (principal and interest) from other sources of the borrower (if any).

7. Measures taken by the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Bank when the borrower does not repay the special loan as prescribed in Clause 1 of this Article and is not granted an extension, or does not repay the special loan as prescribed in Clause 4 of this Article:

a) Transfer the principal and interest of overdue special loans to be monitored, apply the interest rate stipulated in point b, Clause 2, Article 11 of this Circular for the outstanding principal of special loans that have not been repaid on time.

b) For special loans specified in point b, Clause 3, Article 4 of this Circular, the Vietnam Rural Credit Bank shall deduct from the borrower's account at the Vietnam Rural Credit Bank (if any) to recover the loan (principal and interest).

c) Implement measures to dispose of collateral assets in accordance with the provisions of the law to recover the loan (principal and interest) of special loans.

d) Recover the loan (principal and interest) of special loans from other sources of the borrower (if any).

8. Measures taken by the Vietnam Rural Credit Bank in case the borrower does not repay the special loan as prescribed in Clause 3 of this Article:

a) Apply an interest rate of 130% of the interest rate of the special loan for the outstanding principal that has not been repaid, during the period from the day following the due date for repayment prescribed in Clause 3 of this Article until the day the borrower repays the entire outstanding principal.

b) Deduct from the borrower's account at the Vietnam Rural Credit Bank (if any) to recover the amount the borrower must pay (including the outstanding principal that has not been repaid and the interest prescribed in point a of this Clause) within five working days from the date of receiving the written notice from the Special Supervisory Board as prescribed in Clause 5, Article 25 of this Circular.

c) Recover the loan (principal and interest) from other sources of the borrower (if any).

9. Measures taken by the Deposit Insurance Corporation in case the borrower does not repay the special loan as prescribed in Clause 3 of this Article:

a) Apply an interest rate of 130% of the interest rate of the special loan for the outstanding principal that has not been repaid, during the period from the day following the due date for repayment prescribed in Clause 3 of this Article until the day the borrower repays the entire outstanding principal.

b) Recover the loan (principal and interest) of special loans from other sources of the borrower (if any).

10. The special loan shall be prioritized for repayment before all other debts, including secured debts of credit institutions, in the following cases:

a) When the debt repayment deadline arrives, except in cases where the restructuring plan or transfer plan of the credit institution has not yet been approved or where there has been a change in the restructuring plan or transfer plan but it has not yet been approved;

b) When the credit institution is dissolved or declared bankrupt.

11. In cases where there are multiple lenders and the special loan falls under the circumstances prescribed in Clause 10 of this Article, if the borrower does not have sufficient resources to fully repay the special loan to multiple lenders, then the repayment shall be made according to the corresponding percentage of the debt.

Article 16. Procedures for the State Bank to consider and decide on granting special loans for liquidity support

1. When there is a need for a special loan due to the risk of losing the ability to pay or being in a state of losing the ability to pay, the supervised credit institution shall submit four sets of application documents to the Special Supervisory Board requesting the State Bank to grant a special loan.

The application documents include:

a) A special loan request letter, specifying: the name of the credit institution, the Vietnamese dong account number opened at the State Bank branch in the province/city (if any), the reason, the amount requested for the special loan (not exceeding the total value of the collateral assets listed in point d of this Clause), the purpose of using the special loan, the term, the interest rate requested for the special loan, commitment to use the borrowed funds for the intended purpose and comply with the regulations on special loans; whether the credit institution has or has not yet had a restructuring plan or transfer plan that has been approved;  

b) Report on the risk of losing the ability to pay or the situation of losing the ability to pay, measures already applied and planned to be applied to address the issue, explanation of the amount, term, and interest rate requested for the special loan;

c) Data on Vietnamese dong deposits as per Appendix I issued together with this Circular;

d) Data on sources of capital and use of Vietnamese dong capital as per Appendix II issued together with this Circular;

đ) List of collateral assets as per Appendix III issued together with this Circular; in cases where the Prime Minister's decision, recovery plan, mandatory transfer plan, or transfer plan that has been approved includes provisions on collateral for the special loan for liquidity support, the list of collateral assets shall be consistent with the provisions on collateral in the Prime Minister's decision, recovery plan, mandatory transfer plan, or transfer plan that has been approved.

2. If agreeing with the credit institution's request for a special loan, within a maximum of three working days from the date of receipt of the complete application documents as prescribed in Clause 1 of this Article, the Special Supervisory Board shall send one set of application documents to the State Bank branch in the province/city (in cases where the credit institution requests a special loan under the micro-prudential supervision of the State Bank branch in the province/city), two sets of application documents to the State Bank (Department of Monetary Policy), along with a document from the Special Supervisory Board providing comments on the following contents:

a) The operating situation and payment capacity of the credit institution;

b) Specific opinion on whether the credit institution is at risk of losing the ability to pay or is in a state of losing the ability to pay, threatening the stability of the system;

c) Whether the credit institution has or has not yet had a restructuring plan or transfer plan that has been approved; the content of the special loan for liquidity support decided by the Prime Minister or approved in the restructuring plan or transfer plan prescribed in Clause 3, Article 5 of this Circular (if any);

d) Recommendation for granting a special loan to the credit institution, specific opinions on the amount, purpose of using the special loan, term, interest rate for the special loan.

3. Within a maximum of two working days from the date of receipt of the complete application documents and the opinion document as prescribed in Clauses 1 and 2 of this Article, the State Bank branch in the province/city shall provide its opinion in writing to the Department of Monetary Policy on the following contents:

a) The operating situation and payment capacity of the credit institution;

b) Specific opinion on whether the credit institution falls under the circumstances of being at risk of losing the ability to pay or is in a state of losing the ability to pay, threatening the stability of the system;

c) The credit institution has or does not have a restructuring plan that has been approved (in the case where the special loan proposal for liquidity support falls within the decision-making authority of the State Bank of Vietnam branch at provincial or municipal level); the content of the special loan for liquidity support already approved in the restructuring plan (if applicable);

d) Based on the list of collateral assets as stipulated in point đ Clause 1 of this Article, provide comments on whether the collateral assets in the list of collateral assets meet the conditions prescribed in Article 13 of this Circular; in the case where the restructuring plan of the credit institution has been approved by the State Bank of Vietnam branch at provincial or municipal level and includes a special loan for liquidity support with collateral, provide comments on the suitability of the list of collateral assets with the content regarding collateral assets in the approved restructuring plan;

đ) Propose to grant or not to grant a special loan to the credit institution; in the case of proposing to grant a special loan, provide specific comments on the amount, purpose of using the special loan, term, interest rate for the special loan; in the case of proposing not to grant a special loan, clearly state the reasons;

4. Within a maximum period of two working days from the date of receipt of the complete application file and the opinions of relevant agencies as stipulated in Clauses 1, 2, and 3 of this Article, the Monetary Policy Department shall submit the application file and the opinions of relevant agencies to the Banking Supervision Agency for comments. In the case where the list of collateral assets of the credit institution includes negotiable instruments, the Monetary Policy Department shall submit the list of collateral assets to the State Bank of Vietnam Trading Center for comments;

5. Within a maximum period of seven working days from the date of receipt of the application document with the opinion of the Monetary Policy Department as stipulated in Clause 4 of this Article, the Banking Supervision Agency shall issue a written opinion to the Monetary Policy Department on the following contents:

a) The operational situation and payment capacity of the credit institution (in the case where the credit institution's special loan request falls within the micro-prudential supervision scope of the Banking Supervision Agency);

b) Specific opinion on whether the credit institution falls under the circumstances of being at risk of losing the ability to pay or is in a state of losing the ability to pay, threatening the stability of the system;

c) The credit institution has or does not have a restructuring plan, transfer plan that has been approved (except in the case where the credit institution's special loan request falls within the approval authority of the State Bank of Vietnam branch at provincial or municipal level); the content of the special loan for liquidity support already decided by the Prime Minister or approved in the restructuring plan, transfer plan as stipulated in Clause 3, Article 5 of this Circular (if applicable);

d) Based on the list of collateral assets of the credit institution as stipulated in point đ Clause 1 of this Article, provide comments on whether the collateral assets in the list of collateral assets meet the conditions prescribed in Article 13 of this Circular (except in the case where the credit institution's special loan request falls within the micro-prudential supervision scope of the State Bank of Vietnam branch at provincial or municipal level) or provide comments on the suitability of the list of collateral assets with the content regarding collateral assets for the special loan for liquidity support already decided by the Prime Minister or approved in the restructuring plan, transfer plan (if applicable) (except in the case where the restructuring plan includes content regarding collateral assets for the special loan for liquidity support within the approval authority of the State Bank of Vietnam branch at provincial or municipal level);

đ) Propose to grant or not to grant a special loan to the credit institution falling within the micro-prudential supervision scope of the Banking Supervision Agency; in the case of proposing to grant a special loan, provide specific comments on the amount, purpose of using the special loan, term, interest rate for the special loan; in the case of proposing not to grant a special loan, clearly state the reasons;

e) Specific comments on the proposal of the State Bank of Vietnam branch at provincial or municipal level as stipulated in point đ Clause 3 of this Article (in the case where the credit institution's special loan request falls within the micro-prudential supervision scope of the State Bank of Vietnam branch at provincial or municipal level);

g) Proposals regarding the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Cooperative Bank granting special loans as stipulated in point b Clause 2 and point b Clause 3 of Article 4 of this Circular (if applicable);

6. Within a maximum period of seven working days from the date of receipt of the application document with the opinion of the Monetary Policy Department as stipulated in Clause 4 of this Article, the State Bank of Vietnam Trading Center shall issue a written opinion to the Monetary Policy Department on the content regarding negotiable instrument collateral in the list of collateral assets of the credit institution;

7. In the case where the Banking Supervision Agency proposes the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Cooperative Bank to grant special loans, within a maximum period of two working days from the date of receipt of the opinion document of the Banking Supervision Agency, the State Bank (Monetary Policy Department) shall submit the documents stipulated in points a and đ Clause 1 of this Article to seek the opinion of the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Cooperative Bank;

8. Within a maximum period of three working days from the date of receipt of the application document with the opinion of the State Bank (Monetary Policy Department), the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Cooperative Bank shall issue a written opinion to the State Bank (Monetary Policy Department) on the following contents:

a) The balance of the Business Reserve Fund, System Safety Fund for credit unions to grant special loans to credit institutions;

b) Comments on the list of collateral assets of the credit institution;

9. In the case where the opinions of the units are incomplete according to the provisions of this Article, within a maximum period of two working days from the date of receipt of the opinion document, the Monetary Policy Department shall send a document requesting the relevant unit to supplement the opinion. Within a maximum period of three working days from the date of receipt of the request document of the Monetary Policy Department, the requested unit shall send a supplementary opinion document.

10. Within a maximum period of five working days from the date of receipt of all opinions' documents of the units specified in Clauses 5, 6, 8, and 9 of this Article, the Monetary Policy Department shall consolidate, propose, and submit to the Governor of the State Bank for consideration and decision on whether the State Bank or the Vietnam Rural Credit Bank or the Deposit Insurance Corporation shall provide special loans, the amount, purpose of the special loan, term, interest rate for the special loan, collateral; in case of disagreement with providing the special loan, the State Bank shall send a document to the credit institution specifying the reasons.

Article 17. Procedure for the State Bank to provide special loans pursuant to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan.

1. When there is a need for a special loan as provided for in Points b, c, d, đ of Clause 1 of Article 4 of this Circular, the supervised credit institution shall submit four sets of application documents to the Special Supervisory Board requesting the State Bank to provide a special loan.

The application documents include:

a) A special loan request form, clearly stating the amount, purpose of the special loan, interest rate, term, repayment of the special loan according to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan; contents regarding collateral for the special loan in the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan (if applicable); commitment to use the borrowed funds for the intended purpose and comply with the regulations on special loans;

b) A list of collateral confirmed by the Special Supervisory Board (in cases where the special loan has collateral according to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan); the list of collateral must be consistent with the collateral content in the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan;

c) Relevant documents (if any).

2. In case of agreement with the credit institution's special loan request, within a maximum period of two working days from the date of receipt of the complete application documents as stipulated in Clause 1 of this Article, the Special Supervisory Board shall submit one set of application documents to the State Bank branch in the province/city (in cases where the restructuring plan for the credit institution requesting a special loan falls under the approval authority of the State Bank branch in the province/city), two sets of application documents to the State Bank (Monetary Policy Department), along with a specific recommendation letter from the Special Supervisory Board regarding the amount, purpose of the special loan, interest rate, term, and repayment of the special loan.

3. Within a maximum period of three working days from the date of receipt of the complete application documents and opinion documents as stipulated in Clauses 1 and 2 of this Article, the State Bank branch in the province/city shall issue a written opinion to the Monetary Policy Department on the following contents:

a) Contents regarding the provision of special loans to credit institutions according to the approved restructuring plan;

b) Based on the collateral list specified in Point b of Clause 1 of this Article, provide an opinion on the consistency of the collateral list with the collateral content for the special loan according to the approved restructuring plan;

c) Propose to provide a special loan or not to provide a special loan to the credit institution; in case of proposing to provide a special loan, provide a specific opinion on the amount, purpose of the special loan, interest rate, term, and repayment of the special loan; in case of proposing not to provide a special loan, specify the reasons.

4. Within a maximum period of two working days from the date of receipt of the complete application documents and opinion documents as stipulated in Clauses 1, 2, and 3 of this Article, the Monetary Policy Department shall submit the application documents and opinion documents for comments from the Banking Inspection and Supervision Authority. In case the collateral list of the credit institution includes securities, the Monetary Policy Department shall submit the special loan request form and the collateral list of the credit institution for comments from the State Bank Trading Department.

5. Within a maximum period of five working days from the date of receipt of the opinion document of the Monetary Policy Department as stipulated in Clause 4 of this Article, the Banking Inspection and Supervision Authority shall issue a written opinion to the Monetary Policy Department on the following contents:

a) Contents regarding the provision of special loans to credit institutions according to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan;

b) Based on the collateral list specified in Point b of Clause 1 of this Article, provide an opinion on the consistency of the collateral list with the collateral content for the special loan according to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan (except in cases where the restructuring plan for the credit institution includes collateral content for the special loan of the credit institution that falls under the approval authority of the State Bank branch in the province/city);

c) Propose to provide a special loan or not to provide a special loan to the credit institution under the micro-prudential supervision of the Banking Inspection and Supervision Authority; in case of proposing to provide a special loan, provide a specific opinion on the amount, purpose of the special loan, interest rate, term, and repayment of the special loan; in case of proposing not to provide a special loan, specify the reasons;

d) Opinion on the proposal of the State Bank branch in the province/city as specified in Point c of Clause 3 of this Article for the credit institution under the micro-prudential supervision of the State Bank branch in the province/city.

6. Within a maximum period of five working days from the date of receipt of the request document for comments from the Department of Monetary Policy as stipulated in Clause 4 of this Article, the State Bank of Vietnam Trading Center shall provide its comments in writing to the Department of Monetary Policy regarding the contents concerning collateral assets being negotiable instruments in the Collateral Asset List of credit institutions.

7. In cases where the comments of the units are not complete as prescribed in this Article, within a maximum period of two working days from the date of receipt of the comment document, the Department of Monetary Policy shall send a document requesting the relevant unit to supplement its comments. Within a maximum period of five working days from the date of receipt of the request document from the Department of Monetary Policy, the requested unit shall submit a supplementary comment document.

8. Within a maximum period of five working days from the date of receipt of the complete comment documents of the units as stipulated in Clauses 5, 6, and 7 of this Article, the Department of Monetary Policy shall compile, propose, and present to the Governor of the State Bank of Vietnam the decision on granting special loans to credit institutions; in case of disagreement with granting special loans, the State Bank of Vietnam shall send a document to the credit institution stating the reasons.

Article 18. Procedure for the State Bank of Vietnam to consider and decide on extending special loans to support liquidity

1. When there is a need to extend a special loan as specified in point a, clause 1, point b, clause 2, point b, clause 3 of Article 4, and point a, clause 1 of Article 6 of this Circular in cases where restructuring plans or transfer plans have not been approved or where changes to such plans have not been approved, credit institutions must submit four sets of application documents to the Special Supervisory Board at least forty working days before the due date of repayment.

The application documents include:

a) A special loan extension request form, clearly stating: the name of the credit institution, the account number in Vietnamese dong opened at the lender, the reason, the amount requested for extension (not exceeding the total value of the collateral assets listed in point d of this Clause), the term, the interest rate requested for extension, and the commitment to comply with the special loan regulations.

b) A report on the payment capacity of the credit institution; explanation of the amount, term, and interest rate requested for the special loan extension.

c) Data on sources of funds and usage of Vietnamese dong funds according to Appendix II issued together with this Circular.

d) The list of collateral assets according to Appendix III issued together with this Circular.

2. In cases where the Special Supervisory Board agrees with the credit institution's request for an extension of a special loan, within a maximum period of three working days from the date of receipt of the complete application documents as stipulated in Clause 1 of this Article, the Special Supervisory Board shall forward one set of application documents to the State Bank of Vietnam branch in the province/city (in cases where the credit institution's special loan extension request falls under the micro-prudential supervision of the State Bank of Vietnam branch in the province/city), and two sets of application documents to the State Bank of Vietnam (Department of Monetary Policy), accompanied by a document from the Special Supervisory Board providing comments on the following matters:

a) The operating situation and payment capacity of the credit institution;

b) Whether the credit institution has a restructuring plan that has been proposed to the Government or the Prime Minister, or whether it has a restructuring plan that has been decided upon; details about the handling of the special loan already borrowed by the credit institution in the restructuring plan (if applicable); the credit institution does not have an approved restructuring plan or transfer plan, or has changed the restructuring plan or transfer plan but it has not been approved.

c) Recommendations for extending a special loan to the credit institution, specifying the amount, interest rate, and extension period.

3. Within a maximum period of three working days from the date of receipt of the complete application documents and opinion documents as stipulated in Clauses 1 and 2 of this Article, the State Bank branch in the province/city shall issue a written opinion to the Monetary Policy Department on the following contents:

a) The operating situation and payment capacity of the credit institution;

b) Whether the credit institution has a restructuring plan that has been decided upon (in cases where the restructuring plan of the credit institution requesting an extension of a special loan falls under the authority of the State Bank of Vietnam branch in the province/city); details about the handling of the special loan already borrowed by the credit institution in the restructuring plan (if applicable).

c) Whether the credit institution has an approved restructuring plan (in cases where the restructuring plan of the credit institution requesting an extension of a special loan falls under the approval authority of the State Bank of Vietnam branch in the province/city).

d) Based on the list of collateral assets of the credit institution as stipulated in point d of Clause 1 of this Article, provide comments on whether the collateral assets in the list meet the conditions prescribed in Article 13 of this Circular.

đ) Propose whether to extend a special loan or not to extend a special loan to the credit institution; if proposing to extend a special loan, provide specific comments on the amount, term, and interest rate for the extension; if proposing not to extend a special loan, state the reasons clearly.

4. Within a maximum period of two working days from the date of receipt of the complete application documents and the opinion documents as stipulated in Clauses 1, 2, and 3 of this Article, the Department of Monetary Policy shall submit the application documents and opinion documents for comments from the Banking Inspection and Supervision Authority; for special loans as specified in point b of clause 2 and point b of clause 3 of Article 4 of this Circular, submit the list of collateral assets as stipulated in point d of Clause 1 of this Article for comments from the Vietnam Deposit Insurance Corporation and the Vietnam Rural Credit Cooperative Bank. In cases where the list of collateral assets of the credit institution includes negotiable instruments, the Department of Monetary Policy shall submit the list of collateral assets for comments from the State Bank of Vietnam Trading Center.

5. Within a maximum period of seven working days from the date of receipt of the application document with the opinion of the Monetary Policy Department as stipulated in Clause 4 of this Article, the Banking Supervision Agency shall issue a written opinion to the Monetary Policy Department on the following contents:

a) The operational situation and payment capacity of the credit institution (in cases where the credit institution's special loan extension request falls under the micro-prudential supervision of the Banking Inspection and Supervision Authority).

b) Whether the credit institution has a restructuring plan that has been proposed to the Government or the Prime Minister, or whether it has a restructuring plan that has been decided upon; details about the handling of the special loan already borrowed by the credit institution in the restructuring plan (if applicable).

c) A credit institution that has or does not have a restructuring plan, a transfer plan that has been approved (except in the case where the credit institution requests an extension of special loans under the restructuring plan which falls within the approval authority of the State Bank branch at provincial level).

d) Based on the list of collateral assets of the credit institution as stipulated in point d, Clause 1 of this Article, provide opinions on whether the collateral assets in the list meet all conditions prescribed in Article 13 of this Circular (except in the case where the credit institution requests an extension of special loans which fall within the micro-prudential supervision of the State Bank branch at provincial level).

đ) Propose to extend special loans or not to extend special loans for credit institutions subject to micro-prudential supervision by the Banking Inspection and Supervision Authority; if proposing to extend special loans, provide specific opinions on the amount, term, and interest rate of the extension; if proposing not to extend special loans, clearly state the reasons.

e) Provide opinions on the proposal of the State Bank branch at provincial level as stipulated in Clause đ, Article 3 of this Decree for credit institutions subject to micro-prudential supervision by the State Bank branch at provincial level.

6. Within a maximum period of seven working days from the date of receipt of the request for opinion issued by the State Bank (Department of Monetary Policy) as stipulated in Clause 4 of this Article, the Vietnam Deposit Insurance Corporation and the Vietnam Rural Commercial Bank shall issue their opinions in writing and send them to the State Bank (Department of Monetary Policy) regarding the list of collateral assets proposed for the extension of special loans by the credit institution.

7. Within a maximum period of seven working days from the date of receipt of the request for opinion issued by the Department of Monetary Policy as stipulated in Clause 4 of this Article, the State Bank Trading Center shall issue its opinion in writing and send it to the Department of Monetary Policy concerning the contents of collateral assets being securities in the list of collateral assets of the credit institution.

8. In the event that the opinions of the units are incomplete according to the provisions of this Article, within a maximum period of three working days from the date of receipt of the opinion letter, the Department of Monetary Policy shall send a letter requesting the relevant unit to supplement the opinion. Within a maximum period of seven working days from the date of receipt of the request letter from the Department of Monetary Policy, the requested unit shall submit a supplementary opinion letter.

9. Within a maximum period of seven working days from the date of receipt of complete opinion letters from the units as stipulated in Clauses 5, 6, 7, and 8 of this Article, the Department of Monetary Policy shall compile, propose, and submit to the Governor of the State Bank for consideration and decision on the extension of special loans for credit institutions; in the case of disagreement with the extension of special loans, the State Bank shall issue a letter to the credit institution and clearly state the reasons.

10. When a credit institution requests an extension of a special loan as stipulated in point a, Clause 1, point b, Clause 2, point b, Clause 3 of Article 4, and point a, Clause 1 of Article 6 of this Circular, in cases where the restructuring plan or the transfer plan has already been approved and includes content about extending the special loan, the extension shall be carried out according to the approved restructuring plan or transfer plan; the procedure for the extension shall be implemented in accordance with the provisions of Article 19 of this Circular.

Article 19. Procedures for the State Bank to extend special loans pursuant to the Prime Minister's decision, recovery plans, mandatory transfer plans, and approved transfer plans

1. For special loans prescribed at points b, c, d, đ Clause 1 Article 4 of this Circular, based on the content regarding the extension of special loans of credit institutions in the Prime Minister's decision, restructuring plans, and approved transfer plans, credit institutions shall submit four sets of application files to the Special Supervisory Board.

The application documents include:

a) A request for extension of special loans; specifying the amount, interest rate, proposed extension period, repayment of the special loan according to the Prime Minister's decision, restructuring plan, and approved transfer plan; the collateral content for the special loan in the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan (if applicable); commitment to comply with laws on special loans;

b) A list of collateral confirmed by the Special Supervisory Board (in cases where the special loan has collateral according to the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan); The list of collateral must be consistent with the collateral content in the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan;

c) Relevant documents (if any).

2. Within a maximum of two working days from the date of receipt of the application file as stipulated in Clause 1 of this Article, the Special Supervisory Board shall send one set of the application file to the State Bank branch in the province/city (in cases where the restructuring plan for extending special loans falls within the approval authority of the State Bank branch in the province/city), two sets of the application file to the State Bank (Department of Monetary Policy), along with a specific recommendation letter from the Special Supervisory Board regarding the amount, interest rate, extension period, and repayment of the special loan of the credit institution.

3. Within a maximum of three working days from the date of receipt of the application file and the opinion letter as stipulated in Clauses 1 and 2 of this Article, the State Bank branch in the province/city shall provide written opinions to the Department of Monetary Policy on the following contents:

a) Content on the extension of the special loan already borrowed by the credit institution in the approved restructuring plan;

b) Based on the list of collateral as stipulated in point b Clause 1 of this Article, provide an opinion on the consistency of the list of collateral with the collateral content for the special loan in the approved restructuring plan (in cases where the special loan has collateral according to the approved restructuring plan);

c) Propose whether to extend the special loan or not extend the special loan for the credit institution; if proposing to extend the special loan, provide specific opinions on the amount, interest rate, extension period, and repayment of the special loan of the credit institution; if proposing not to extend the special loan, clearly state the reasons.

4. Within a maximum of two working days from the date of receipt of the complete application file and the opinion letters as stipulated in Clauses 1, 2, and 3 of this Article, the Department of Monetary Policy shall submit the application file and opinion letters for comments from the Banking Inspection and Supervision Authority. In cases where the credit institution's list of collateral includes negotiable instruments, the Department of Monetary Policy shall submit the Request Letter and the list of collateral for comments from the State Bank Trading Department.

5. Within a maximum period of five working days from the date of receipt of the opinion document of the Monetary Policy Department as stipulated in Clause 4 of this Article, the Banking Inspection and Supervision Authority shall issue a written opinion to the Monetary Policy Department on the following contents:

a) Content on the extension of the special loan already borrowed by the credit institution in the Prime Minister's decision, restructuring plan, and approved transfer plan (except in cases where the restructuring plan includes the extension of the special loan of the credit institution within the approval authority of the State Bank branch in the province/city);

b) Based on the list of collateral as stipulated in point b Clause 1 of this Article, provide an opinion on the consistency of the list of collateral with the collateral content for the special loan in the Prime Minister's decision, recovery plan, mandatory transfer plan, and approved transfer plan (except in cases where the restructuring plan includes the collateral content for the special loan of the credit institution within the approval authority of the State Bank branch in the province/city);

c) Propose whether to extend the special loan or not extend the special loan for the credit institution under the micro-prudential inspection and supervision of the Banking Inspection and Supervision Authority; if proposing to extend the special loan, provide specific opinions on the amount, interest rate, extension period, and repayment of the special loan of the credit institution; if proposing not to extend the special loan, clearly state the reasons;

d) Provide an opinion on the proposal of the State Bank branch in the province/city at point c Clause 3 of this Article for the credit institution under the micro-prudential inspection and supervision of the State Bank branch in the province/city.

6. Within a maximum period of five working days from the date of receipt of the request document for comments from the Department of Monetary Policy as stipulated in Clause 4 of this Article, the State Bank of Vietnam Trading Center shall provide its comments in writing to the Department of Monetary Policy regarding the contents concerning collateral assets being negotiable instruments in the Collateral Asset List of credit institutions.

7. In cases where the content of the opinion letters from the units is incomplete as stipulated in this Article, within a maximum of three working days from the date of receipt of the opinion letters, the Department of Monetary Policy shall send a letter requesting the relevant unit to supplement the opinion. Within a maximum of seven working days from the date of receipt of the request letter from the Department of Monetary Policy, the requested unit shall send a supplementary opinion letter.

8. Within a maximum of five working days from the date of receipt of the complete opinion letters from the units as stipulated in Clauses 5, 6, and 7 of this Article, the Department of Monetary Policy shall compile, propose, and submit to the Governor of the State Bank for the extension of the special loan for the credit institution; in cases where it does not agree to extend the special loan, the State Bank shall issue a letter to the credit institution stating the reasons.

Article 20. Procedure for the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and other credit institutions to provide special loans and extend special loans to support liquidity

1. When there is a need for special loans as prescribed in point a, Clause 2, point a, Clause 3, and point a, Clause 4 of Article 4 of this Circular, the credit institution under special control shall submit four sets of application documents to the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, or another credit institution.

The application documents include:

a) Documents as required by the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, or another credit institution;

b) A document from the Special Control Board requesting the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, or another credit institution to consider providing a special loan to the credit institution under special control; including the following contents: The operational situation and payment capacity of the credit institution; specific opinions on whether the credit institution is at risk of losing its payment capacity or entering a state of losing its payment capacity, threatening the stability of the system.

2. Within a maximum period of five working days from the date of receipt of the complete application documents as stipulated in Clause 1 of this Article, if it is possible to provide a special loan to the credit institution, the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, or another credit institution shall send the document from the Special Control Board to seek the opinion of the State Bank branch in the province/city (in case the credit institution falls within the micro-prudential supervision and inspection scope of the State Bank branch in the province/city) and the Banking Inspection and Supervision Authority on the following matters:

a) Whether the credit institution falls within the category at risk of losing its payment capacity or entering a state of losing its payment capacity, threatening the stability of the system;

b) Contents regarding the special loan provided by the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, or another credit institution in the restructuring plan that has been approved (if any).

3. If necessary, the Banking Inspection and Supervision Authority shall seek the opinion of the State Bank branch in the province/city before issuing a response to the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and another credit institution.

4. The Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and other credit institutions shall examine and decide on the provision of special loans to credit institutions under special control.

5. When there is a need to extend the term of a special loan as prescribed in point a, Clause 2, point a, Clause 3, and point a, Clause 4 of Article 4 of this Circular:

a) The borrower shall submit an extension request to the lender. The request shall include: Documents as required by the lender; a document from the Special Control Board requesting the lender to consider extending the special loan to the borrower (including information about the operational situation and payment capacity of the borrower);

b) The lender shall examine and decide on the extension of the special loan to the borrower.

Article 21. Procedure for the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and other credit institutions to provide special loans and extend special loans according to recovery plans and mandatory transfer plans that have been approved

The Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and other credit institutions shall provide special loans and extend special loans as prescribed in point c, Clause 2, point c, Clause 3, and point b, Clause 4 of Article 4 of this Circular according to recovery plans and mandatory transfer plans that have been approved and internal regulations of the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, and other credit institutions.

Article 22. Signing special loan contracts, accepting pledges, mortgages on collateral assets, disbursing special loans

1. Signing special loan contracts, accepting pledges, mortgages on collateral assets for special loans as stipulated in Clause 1, Article 4 of this Circular:

a) Within a maximum period of three working days from the date of receipt of the State Bank of Vietnam's document regarding special lending to credit institutions, the Director of the State Bank branch in the province/city shall sign the special loan contract based on this document and relevant laws, including provisions concerning acceptance of collateral assets (if any);

b) In cases where the special loan has collateral assets in the form of negotiable instruments, within one working day from the date of signing the special loan contract, the State Bank branch in the province/city shall send the signed special loan contract to the State Bank Trading Department;

c) Within two working days from the date of receipt of the signed special loan contract sent by the State Bank branch in the province/city, the State Bank Trading Department shall perform accounting, pledge, and freeze the collateral assets in the form of negotiable instruments attached to the signed special loan contract and notify the State Bank branch in the province/city in writing about the completion of these actions.

2. Signing special loan contracts, accepting pledges, mortgages on collateral assets for special loans as stipulated in Point b, Clause 2, Point b, Clause 3 of Article 4 of this Circular:

a) Within a maximum period of three working days from the date of receipt of the State Bank's document regarding special lending to credit institutions, the Deposit Insurance Corporation of Vietnam and the Vietnam Rural Credit Bank shall sign the special loan contract based on this document and relevant laws;

b) After signing the special loan contract, the Deposit Insurance Corporation of Vietnam and the Vietnam Rural Credit Bank shall accept pledges and mortgages on collateral assets according to the list of collateral assets attached to the signed special loan contract.

3. Signing special loan contracts, accepting pledges, mortgages on collateral assets for special loans as stipulated in Point c, Clause 2, Point c, Clause 3, Point b, Clause 4 of Article 4 of this Circular:

Based on approved recovery plans and mandatory transfer plans, the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, and other credit institutions shall sign special loan contracts and accept pledges and mortgages on collateral assets (if any).

4. Disbursing special loans for special loans as stipulated in Clause 1, Point b, c, Clause 2, Point b, c, Clause 3, Point b, Clause 4 of Article 4 of this Circular:

a) When there is a need for disbursement of special loan funds, the borrower shall submit a request for disbursement of special loan funds (hereinafter referred to as the disbursement request) to the Special Supervisory Board, specifying the amount, time, and reasons for requesting disbursement;

b) Based on the borrower's need for special loan funds, the Special Supervisory Board shall review and provide comments on the borrower's disbursement request. If agreed, the Special Supervisory Board shall issue a document specifying the amount and time of disbursement along with the borrower's disbursement request as stipulated in Point a of this Clause and send it to the State Bank branch in the province/city, the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, or other credit institutions;

c) The State Bank branch in the province/city, the Deposit Insurance Corporation of Vietnam, the Vietnam Rural Credit Bank, or other credit institutions shall disburse the special loan based on the signed special loan contract, the borrower's disbursement request, and the Special Supervisory Board's document as stipulated in Points a and b of this Clause;

d) The lender shall only disburse the special loan after completing the procedures for accepting collateral assets (if any).

5. For special loans as stipulated in Point a, Clause 2, Point a, Clause 3, Point a, Clause 4 of Article 4 of this Circular, the signing of special loan contracts, acceptance of collateral assets (if any), and disbursement of special loans shall be carried out in accordance with internal regulations of the Vietnam Rural Credit Bank, the Deposit Insurance Corporation of Vietnam, other credit institutions, and agreements with the borrower.

 

Chapter III

IMPLEMENTING PROVISIONS

 

Article 23. Responsibilities of the Borrower

1. Provide the lender with complete, timely, and accurate documents regarding special loans; bear legal responsibility for the accuracy and legality of the provided documents.

2. Be responsible for the collateral securing the special loan to meet the conditions stipulated in Clause 3 of Article 13 of this Circular or be consistent with the content on collateral in the Prime Minister's decision, restructuring plan, transfer plan that have been approved (if applicable); the loan-generated receivables used as collateral for the special loan must comply with the provisions of the law on lending activities.

3. Use the special loan for its intended purpose and repay the special loan according to the provisions of this Circular, the Prime Minister's decision, the approved restructuring plan, transfer plan, and the signed special loan agreement.

4. During the period of the special loan, the borrower shall be responsible for:

a) Safeguarding and retaining separately the loan files generating receivables currently being used as collateral for the special loan;

b) Not using the receivables currently being used as collateral for the special loan for other purposes;

"c) Monitoring and assessing the conditions of the collateral for the special loan; supplementing and replacing the collateral according to the provisions of this Circular;"

d) Reporting to the Special Supervisory Board when the collateral does not meet the conditions stipulated in Clause 3 of Article 12 of this Circular;

đ) Reporting to the Special Supervisory Board the amount recovered from the receivables currently being used as collateral for the special loan within three working days from the date of debt recovery.

5. Dispose of the collateral in accordance with the regulations to repay the special loan to the lender.

6. Regularly report monthly, within five working days at the beginning of the following month after the reporting month or when necessary, in written form about the use of the special loan directly or through postal services to:

a) The State Bank of Vietnam branch in the province/city (in cases where the State Bank of Vietnam provides the special loan);

b) Vietnam Deposit Insurance Corporation (in cases where Vietnam Deposit Insurance Corporation provides the special loan);

c) Vietnam Rural Credit Bank (in cases where Vietnam Rural Credit Bank provides the special loan);

d) The lending credit institution (in cases where another credit institution provides the special loan).

7. Report to the Special Supervisory Board on the repayment of the special loan within two working days from the date of repayment.

8. Fulfill other responsibilities prescribed in this Circular, relevant laws, and the special loan agreement.

Article 24. Responsibilities of Vietnam Deposit Insurance Corporation, Vietnam Rural Credit Bank, and Lending Credit Institutions

1. Examine and decide on granting special loans and extending special loans to credit institutions in accordance with this Circular; report to the Governor of the State Bank of Vietnam (through the Banking Inspection and Supervision Authority) on the approval or non-approval of special loans and extensions of special loans.

2. Issue internal regulations on granting special loans to supervised credit institutions, including at least the contents on examining and deciding on special loans, extending special loans, disbursing funds, collecting special loans, collateral, and disposing of collateral.

3. Monitor the use of special loan capital by the borrower; urge and require the borrower to repay the special loan according to the provisions of this Circular, the Prime Minister's decision, the approved restructuring plan, transfer plan, and the signed special loan agreement.

4. Accept and dispose of collateral in accordance with the provisions of this Circular and the law on secured transactions.

5. Within seven working days at the beginning of the following month when there is outstanding debt or changes occur in the special loan at Vietnam Deposit Insurance Corporation, Vietnam Rural Credit Bank, or the lending credit institution, submit a report according to Appendix VI issued together with this Circular to the State Bank of Vietnam.

6. Fulfill other responsibilities prescribed in this Circular and relevant laws.

Article 25. Responsibilities of the Special Supervisory Board

1. Monitor the use of special loan funds by the borrower; in case of discovering that the borrower uses the special loan funds for purposes other than those intended, the Special Supervisory Board shall notify the lender in writing.

2. Monitor the revenues of the borrower (including payments and recoveries from collateral for the special loan) to recommend recovery of the special loan debt; urge and require the borrower to process the collateral and repay the special loan debt in accordance with this Circular.

3. Recommend to the Governor of the State Bank of Vietnam measures for debt recovery and methods for recovering debts under the special loans specified in Clause 1, Point b, c Clause 2, Point b, c Clause 3, Point b Clause 4 Article 4 of this Circular.

4. Based on the report of the borrower as stipulated in Point d Clause 4 Article 23 of this Circular, urge the borrower to review, supplement, and replace the collateral in accordance with this Circular.

5. Notify in writing the unit of the State Bank of Vietnam accounting for the special loan (State Bank branch in province/city or State Bank Trading Department), Vietnam Joint Stock Commercial Bank, and Deposit Insurance Corporation of Vietnam about the borrower's failure to repay the special loan debt as stipulated in Clause 3 Article 15 of this Circular.

6. Timely report to the Governor of the State Bank of Vietnam issues arising related to the special loan and propose measures to address them.

7. Perform other responsibilities prescribed in this Circular and relevant laws.

Article 26. Responsibilities of Units under the State Bank of Vietnam

1. Monetary Policy Department

a) Serve as the focal point to submit to the Governor of the State Bank of Vietnam for consideration and decision on granting special loans and extending the term of special loans as stipulated in this Circular;

b) Aggregate data on special loans in cases specified in Clause 1, Point b Clause 2, Point b Clause 3 Article 4 of this Circular to periodically report monthly to the Governor of the State Bank of Vietnam;

c) Serve as the focal point to submit to the Governor of the State Bank of Vietnam regarding the handling of difficulties arising related to the provisions of this Circular.

2. Banking Inspection and Supervision Authority

a) Provide opinions on granting special loans and extending the term of special loans as stipulated in this Circular;

b) Serve as the focal point to submit to the Governor of the State Bank of Vietnam for consideration and decision or submit to the competent authority for consideration and decision on the recommendations of the Special Supervisory Board as stipulated in Clause 3 Article 25 of this Circular;

c) Supervise, inspect, and handle violations within its authority against credit institutions subject to micro-prudential supervision and inspection by the Banking Inspection and Supervision Authority in implementing the provisions of this Circular;

d) In case of receiving notification from the competent authority or through inspection and supervision work discovering that credit institutions subject to micro-prudential supervision and inspection by the Banking Inspection and Supervision Authority have violated as stipulated in Clause 4 Article 15 of this Circular, the Banking Inspection and Supervision Authority shall issue a violation notice to the borrower, the State Bank branch in province/city, Deposit Insurance Corporation of Vietnam, Vietnam Joint Stock Commercial Bank, and simultaneously send it to the Special Supervisory Board, Monetary Policy Department; the violation notice must minimally include the content regarding the violation of using capital for purposes other than those intended by the credit institution.

3. State Bank of Vietnam's Trading Department

a) Provide opinions on collateral assets being securities in the list of collateral assets of credit institutions as stipulated in this Circular;

b) Based on the Decision on Special Supervision of Credit Institutions, account for the transfer of rediscounting loan accounts at the State Bank Trading Department as special loans; notify the credit institution in writing about the deduction from the credit institution's account to recover the debt and implement the provisions at Points a, b, đ, e Clause 5, Clause 6 Article 15 of this Circular for this special loan;

c) In case the collateral for the special loan is securities, carry out accounting, pledge, and freeze the collateral; terminate the pledge and unfreeze the collateral after receiving the notification from the State Bank branch in province/city as stipulated in Point k Clause 4 of this Article; implement the provisions at Point c Clause 5 Article 15 of this Circular;

d) Serve as the focal point to implement the provisions at Point b Clause 4 Article 12 of this Circular for special loans accounted for at the State Bank Trading Department;

đ) Coordinate with the State Bank branch in province/city to implement the provisions at Point d Clause 4 of this Article; notify the State Bank branch in province/city in writing about the completion of accounting, pledging, and freezing the collateral securities supplemented by the borrower;

e) Perform other responsibilities prescribed in this Circular.

4. State Bank branch in province/city

a) Provide opinions on granting special loans and extending the term of special loans as stipulated in this Circular;

b) Based on the Decision on Special Supervision of Credit Institutions, account for the transfer of rediscounting loan accounts at the State Bank branch in province/city as special loans;

c) Implement the special loan agreement according to Appendix V issued together with this Circular, disburse, extend, and recover special loans in accordance with this Circular, the State Bank's documents on special loans, extensions, and recovery of special loans, and relevant laws;

d) Serve as the focal point to implement the provisions at Point b Clause 4 Article 12 of this Circular for special loans accounted for at the State Bank branch in province/city;

đ) Coordinate with the State Bank Trading Department to implement the provisions at Point d Clause 3 of this Article; notify the State Bank Trading Department in writing about the completion of accepting the pledge of collateral claims supplemented by the borrower (except for special loans accounted for at the State Bank branch in province/city where the borrower does not replace the collateral securities); notify the credit institution in writing about the deduction from the credit institution's account to recover the debt and implement the provisions at Points a, b, đ, e Clause 5, Clause 6 Article 15 of this Circular for special loans accounted for at the State Bank branch in province/city;

e) Coordinate with the Special Supervisory Board to implement the provisions at Clauses 1, 2 Article 25 of this Circular;

g) Within seven working days from the beginning of the following month in which there is outstanding debt or changes occur regarding special loans at the State Bank branch in the province/city, report according to Appendix VI issued together with this Circular shall be sent to the Banking Supervisory Authority, the Department of Monetary Policy;

h) Supervise, inspect, and handle violations within their authority against credit institutions subject to micro-prudential supervision by the State Bank branch in the province/city in implementing the provisions of this Circular;

i) In case of receiving notification from the competent authority, the Special Control Board, or through inspection and supervision work discovering that credit institutions subject to micro-prudential supervision by the State Bank branch in the province/city have violated as stipulated in Clause 4, Article 15 of this Circular, the State Bank branch in the province/city shall issue a violation notice to send to the borrower, the Vietnam Deposit Insurance Corporation, the Vietnam Rural Credit Bank, simultaneously sending it to the Special Control Board, the Banking Supervisory Authority, the Department of Monetary Policy; the violation notice must minimally contain the content about the violation of using capital for purposes other than intended by the credit institution;

k) Notify in writing to the State Bank Trading Department about the full recovery of principal and interest of the special loan;

l) Perform other responsibilities as prescribed in this Circular.

5. The Department of Finance and Accounting: Guide accounting entries related to the State Bank's special loans to credit institutions under special control, including the conversion of the outstanding principal and interest of refinancing loans into special loan debts and the acceptance of collateral for special loans.

Article 27. Transitional Provisions

1. For special loans considered and decided by the State Bank with remaining balances on the effective date of this Circular:

a) Continue to implement according to the special loan issuance document, special loan extension, or special loan contract already signed;

b) When there is no approved restructuring plan or transfer plan, or when changing the restructuring plan or transfer plan but not yet approved, the extension of the special loan shall be carried out according to the provisions of Clause 2, 3, 4 of this Article, Point a Clause 1, Point a Clause 2 of Article 11, Article 14 of this Circular;

c) In cases where the approved restructuring plan or transfer plan includes the extension of the special loan, the extension shall be implemented according to the approved restructuring plan or transfer plan; the procedure for extension shall be carried out according to the provisions of Article 19 of this Circular.

2. For special loans that credit institutions have borrowed before the Law on Credit Institutions No. 47/2010/QH12 took effect and still have remaining balances on the effective date of this Circular, the examination of extension shall be carried out according to the following procedures:

a) When requesting an extension of the special loan in cases where there is no approved restructuring plan or changing the restructuring plan but not yet approved, at least 50 working days before the due date of repayment, the borrower must submit four Requests for Extension of Special Loan to the Special Control Board, clearly stating: name of the credit institution, Vietnamese currency account number opened at the lender (if any), reasons, amount, interest rate, requested extension period, current operating status of the credit institution; in cases where there is no Special Control Board, the credit institution submits one Request to the State Bank branch in the province/city and two Requests to the State Bank (Department of Monetary Policy);

b) If agreeing with the borrower's request for extension of the special loan, within a maximum of five working days from the date of receipt of the Request specified in Point a of this Clause, the Special Control Board sends the Request along with the Special Control Board's opinion document according to the provisions of Clause 2, Article 18 of this Circular;

c) Within a maximum of five working days from the date of receipt of all Requests and opinion documents specified in Points a, b of this Clause or the Request specified in Point a of this Clause (in cases where there is no Special Control Board), the State Bank branch in the province/city shall provide an opinion in writing to the Department of Monetary Policy regarding the content related to the borrower's special loan, proposing whether to extend or not extend the special loan to the borrower; if proposing an extension, specific opinions on the amount, interest rate, and extension period shall be provided; if proposing not to extend, the reasons must be clearly stated;

d) Within a maximum of five working days from the date of receipt of all Requests and opinion documents specified in Points a, b, c of this Clause, the Department of Monetary Policy sends the Request and opinion documents of relevant units to seek the Banking Supervisory Authority's opinion;

đ) Within a maximum of ten working days from the date of receipt of the document requesting the opinion of the Department of Monetary Policy specified in Point d of this Clause, the Banking Supervisory Authority shall provide an opinion in writing to the Department of Monetary Policy regarding the contents as stipulated in Points a, b, c, đ Clause 5, Article 18 of this Circular;

e) In cases where the opinion documents of relevant units are incomplete according to the provisions of this Clause, within a maximum of five working days from the date of receipt of the opinion documents, the Department of Monetary Policy shall send a document requesting the relevant unit to supplement the opinion. Within a maximum of ten working days from the date of receipt of the Department of Monetary Policy's request, the requested unit shall submit a supplementary opinion document;

g) Within a maximum of fifteen working days from the date of receipt of all opinion documents of relevant units specified in Points đ, e of this Clause, the Department of Monetary Policy shall compile, propose, and submit to the Governor of the State Bank for consideration and decision on extending the special loan to the borrower; in cases where the extension of the special loan is not agreed upon, the State Bank shall issue a document to the borrower and clearly state the reasons.

3. For special loans that credit institutions have borrowed after the Law No. 17/2017/QH14 took effect and still have outstanding balances on the date this Circular takes effect, the review and extension process shall be carried out in the following manner:

a) When there is a need to extend a special loan in cases where no restructuring plan has been approved or where a change in the restructuring plan has not yet been approved, the borrower must submit four sets of application documents to the Special Supervisory Board at least 50 working days before the due date for repayment.

The application documents include:

(i) A request for extension of a special loan, clearly stating: the name of the credit institution, the Vietnamese dong account number opened with the lender (if applicable), reasons, amount, interest rate, and the requested extension period;

(ii) A report on the credit institution's ability to pay; explanation of the amount, interest rate, and requested extension period;

(iii) Data on sources of funds and usage of Vietnamese dong funds according to Appendix II issued together with this Circular;

b) If the Special Supervisory Board agrees with the borrower's request for extension of the special loan, within a maximum of five working days from the date of receiving all the application documents as stipulated in point a of this Clause, the Special Supervisory Board will send the application documents along with a written opinion of the Special Supervisory Board as prescribed in Clause 2, Article 18 of this Circular;

c) Within a maximum of five working days from the date of receiving all the application documents and opinions as stipulated in points a and b of this Clause, the State Bank of Vietnam branch in the province or city will issue a written opinion sent to the Department of Monetary Policy regarding the contents as prescribed in points a, b, c, and đ of Clause 3, Article 18 of this Circular;

d) Within a maximum of five working days from the date of receiving all the application documents and opinions as stipulated in points a, b, and c of this Clause, the Department of Monetary Policy will send the application documents and opinions of the relevant units to seek the opinion of the Banking Inspection and Supervision Authority;

đ) Within a maximum of ten working days from the date of receiving the proposal document with the opinion of the Department of Monetary Policy, the Banking Inspection and Supervision Authority will issue a written opinion sent to the Department of Monetary Policy regarding the contents as prescribed in points b, c, and e of Clause 5, Article 18 of this Circular;

e) In cases where the opinion documents of relevant units are incomplete according to the provisions of this Clause, within a maximum of five working days from the date of receipt of the opinion documents, the Department of Monetary Policy shall send a document requesting the relevant unit to supplement the opinion. Within a maximum of ten working days from the date of receipt of the Department of Monetary Policy's request, the requested unit shall submit a supplementary opinion document;

g) Within a maximum of fifteen working days from the date of receiving all the opinion documents as stipulated in points đ and e of this Clause, the Department of Monetary Policy will compile, propose, and submit to the Governor of the State Bank of Vietnam for consideration and decision on extending the special loan to the borrower; if the extension of the special loan is not agreed upon, the State Bank of Vietnam will issue a document sent to the borrower specifying the reasons.

4. For special loans that the State Bank of Vietnam has reviewed and decided on, which still have outstanding balances on the date this Circular takes effect (excluding special loans prescribed in Clauses 2 and 3 of this Article), the review and extension process shall be carried out in the following manner:

a) When there is a need to extend a special loan in cases where no restructuring plan or transfer plan has been approved or where changes to the restructuring plan or transfer plan have not yet been approved, the borrower must submit four sets of application documents to the Special Supervisory Board at least 50 working days before the due date for repayment requesting the State Bank of Vietnam to extend the special loan.

The application documents include:

(i) A request for extension of a special loan, clearly stating: the name of the credit institution, the Vietnamese dong account number opened with the lender, reasons, amount, interest rate, requested extension period, and commitment to comply with the laws on special loans;

(ii) A report on the credit institution's ability to pay; explanation of the amount, interest rate, and requested extension period;

(iii) Data on sources of funds and usage of Vietnamese dong funds according to Appendix II issued together with this Circular;

(iv) A list of collateral assets meeting the conditions prescribed in Article 13 of this Circular according to Appendix VII issued together with this Circular, with the total value of collateral assets not being less than the amount of the special loan requested for extension.

b) If the Special Supervisory Board agrees with the borrower's request for extension of the special loan, within a maximum of five working days from the date of receiving all the application documents as stipulated in point a of this Clause, the Special Supervisory Board will send the application documents along with a written opinion of the Special Supervisory Board as prescribed in Clause 2, Article 18 of this Circular;

c) Within a maximum of five working days from the date of receiving all the application documents and opinions as stipulated in points a and b of this Clause, the Department of Monetary Policy will send the application documents and opinions of the Special Supervisory Board to seek the opinion of the Banking Inspection and Supervision Authority; if the list of collateral assets of the credit institution includes negotiable instruments, the Department of Monetary Policy will send the list of collateral assets to seek the opinion of the State Bank of Vietnam Trading Department;

d) Within a maximum of ten working days from the date of receiving the proposal document with the opinion of the Department of Monetary Policy as stipulated in point c of this Clause, the Banking Inspection and Supervision Authority will issue a written opinion on the contents as prescribed in Article 18, Clause 5 of this Circular, and the State Bank of Vietnam Trading Department will issue a written opinion sent to the Department of Monetary Policy regarding the contents concerning collateral assets being negotiable instruments in the list of collateral assets of the credit institution;

đ) In case the opinions of the relevant units are incomplete as stipulated in this Clause, within a maximum of five working days from the date of receiving the opinions, the Department of Monetary Policy will send a document requesting the relevant unit to supplement the opinion. Within a maximum of ten working days from the date of receiving the request document of the Department of Monetary Policy, the unit requested will send a supplementary opinion document;

e) Within a maximum of fifteen working days from the date of receiving all the opinions of the relevant units as stipulated in points d and đ of this Clause, the Department of Monetary Policy will compile, propose, and submit to the Governor of the State Bank of Vietnam for consideration and decision on extending the special loan to the borrower; if the extension of the special loan is not agreed upon, the State Bank of Vietnam will issue a document sent to the borrower specifying the reasons.

Article 28. Effectiveness

1. This Circular takes effect from October 27, 2021.

2. From the date this Circular takes effect, Circular No. 01/2018/TT-NHNN dated January 26, 2018 of the Governor of the State Bank of Vietnam on special loans for credit institutions under special control, and Clause 8, Article 1 of Circular No. 14/2019/TT-NHNN dated August 30, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circulars concerning the regular reporting system of the State Bank of Vietnam shall cease to be effective.

3. The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam; the Vietnam Deposit Insurance Corporation; credit institutions shall be responsible for organizing the implementation of this Circular./.