Circular No. 11/2013/TT-NHNN on housing support loans pursuant to Resolution No. 02/NQ-CP dated January 7, 2013 of the Government

CIRCULAR

Article 24regulating housing support loans in accordance with N |||Resolution No. 02/NQ-CP

January 7, 2013 Cgovernment

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

No. 06/2013/UBTVQH13 dated March 18, 2013;

Pursuant to the Law on Housing dated November 29, 2005;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 71/2010/NĐ-CP dated June 23, 2010 of the Government detailing and guiding the implementation of the Law on Housing

Pursuant to Resolution No. 02/NQ-CP dated January 7, 2013 of the Government on certain measures to address difficulties in production and business, support markets, and resolve bad debts, and Resolution No. 48/NQ-CP dated April 4, 2013 of the Government on the regular meeting of the Government in March 2013;

At the proposal of the Credit Department Director,

The Governor of the State Bank of Vietnam issues this Circular regulating housing support loans in accordance with Resolution No. 02/NQ-CP of the Government,

PART I

GENERAL PROVISIONS

2. Applicability:

b) State-owned commercial banks and joint-stock commercial banks in which the state holds more than 50% of the charter capital (hereinafter referred to as the bank) shall allocate a minimum amount of 3% of their total outstanding loan balance at the end of the previous year for lending to the objects specified in point a, Clause 2 of this Article. For loans not sourced from the State Bank's rediscounting funds, the bank shall implement lending in accordance with current laws with interest rates and terms suitable to the borrower's repayment capacity and the bank's financial situation.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Borrowers (hereinafter referred to as customers) include:

- Individuals purchasing, renting, or leasing social housing and renting or buying commercial housing with an area less than 70 square meters and a selling price below 15,000,000 VND per square meter as defined in Circular No. 07/2013/TT-BXD dated May 15, 2013 of the Ministry of Construction guiding the determination of individuals eligible for housing support loans under Resolution No. 02/NQ-CP dated January 7, 2013 of the Government and any subsequent amendments, supplements, or replacements to Circular No. 07/2013/TT-BXD (if applicable);

- Enterprises that are investors in social housing projects and enterprises that are investors in commercial housing projects converted to social housing projects announced by the Ministry of Construction during each period (hereinafter referred to as enterprises).

b) Banks lending in accordance with this Circular include:

- Vietnam Agriculture and Rural Development Bank; - Vietnam Joint Stock Commercial Bank for Investment and Development;

- Vietnam Joint Stock Commercial Bank for Industry and Trade;

- Vietnam Joint Stock Commercial Bank for Foreign Trade;

- Vietnam Joint Stock Commercial Bank for Housing Development in the Mekong Delta.

c) Organizations and individuals related thereto.

1. The State Bank will provide rediscounting funds to support banks in providing housing support loans in accordance with this Circular. The disbursement of housing support loans by banks to customers from the State Bank's rediscounting funds ends when the State Bank has fully disbursed the rediscounting funds but no later than 36 months from the date this Circular takes effect.

2. Banks shall lend to customers in accordance with current laws governing lending by credit institutions to customers and the provisions of this Circular. Banks are responsible for examining, appraising, and deciding on lending to customers and bear responsibility for their lending decisions.

3. Customers are responsible for using borrowed funds for their intended purpose and repaying the principal and interest in full and on time to the bank in accordance with the credit agreement.

4. Banks shall lend to enterprises that are investors in social housing construction projects and commercial housing projects converted to social housing projects based on the list published by the Ministry of Construction during each period. The total amount of loans provided by banks to enterprises shall not exceed 30% of the housing support rediscounting funds specified in Clause 1, Article 8 of this Circular.

Chapter II

HOUSING SUPPORT LOANS OF THE BANK

Article 3. Loan Conditions

In addition to the loan conditions stipulated by current laws on loans from credit institutions to customers, as prescribed in Circular No. 07/2013/TT-BXD dated May 15, 2013, issued by the Ministry of Construction, and any subsequent amendments, supplements, or replacements thereof, customers must also meet the following additional conditions:

1. For individual customers borrowing to purchase, lease, or lease-purchase social housing and to lease or purchase commercial housing with an area less than 70 square meters and a selling price below VND 15,000,000 per square meter:

a) Having a contract for purchasing, leasing, or lease-purchasing social housing; a lease-purchase contract for commercial housing with the developer;

b) The purpose of borrowing funds is to pay the outstanding amount for purchasing, leasing, or lease-purchasing social housing; leasing or purchasing commercial housing as prescribed in this Circular for contracts signed with the developer from January 7, 2013;

c) A request to borrow funds to purchase, lease, or lease-purchase social housing; to lease or purchase commercial housing, and a commitment that neither the customer nor members of their household have borrowed support funds from banks to purchase, lease, or lease-purchase housing as prescribed in this Circular;

d) Having sufficient minimum capital to participate in the loan plan as prescribed in Clause 3 of this Article.

a) Being a corporation as prescribed in Point a, Clause 2, Article 1 of this Circular;

b) The purpose of borrowing funds is to pay outstanding costs incurred from January 7, 2013 (excluding tax expenses) to implement projects for building social housing, projects for converting commercial housing to social housing as prescribed in this Circular;

c) Having sufficient minimum capital to participate in the project, loan plan as prescribed in Clause 3 of this Article;

d) A commitment not to have borrowed support funds from banks to implement projects for building social housing, projects for converting commercial housing to social housing as prescribed in this Circular.

3. The bank specifies the minimum capital of the customer participating in the project, loan plan, but it does not exceed 20% of the loan plan for customers prescribed in Clause 1 of this Article and does not exceed 30% of the total investment cost of the project, loan plan for customers prescribed in Clause 2 of this Article. In cases where the customer has leased-purchased social housing and paid at least 20% of the value of the leased-purchased house, the bank does not specify a minimum capital requirement.

Article 4. Interest Rate for Loans

1. The interest rate for housing support loans by banks for customers is announced annually by the State Bank and applied to loans with outstanding balances during the year.

2. The interest rate applicable in 2013 is 6% per annum.

3. Annually, in December, the State Bank determines and announces again the interest rate applicable for the following year, which is approximately 50% of the average lending rate of banks in the market but does not exceed 6% per annum.

1. The loan term for customers purchasing, leasing, or lease-purchasing social housing and leasing or purchasing commercial housing is a minimum of 10 years. If the customer requests a loan term shorter than 10 years, they may negotiate a shorter loan term with the bank.

2. The loan term for corporate customers is a maximum of 5 years.

Article 6. Guarantee Measures for Loan Financing

The bank shall examine and decide on granting loans with or without guarantees on assets in accordance with the provisions of the law.

Article 7. Classification of Debts and Risk Management

The classification of debts, the establishment and utilization of reserves to handle risks for housing support loans under this Circular shall be carried out in accordance with the regulations of the State Bank of Vietnam.

Chapter III

RECAPITALIZATION OF LOANS FOR HOUSING SUPPORT

1. The State Bank of Vietnam shall disburse the loan recapitalization amount of approximately thirty trillion VND to the bank based on the outstanding loan balance of the bank to customers, but not exceeding thirty-six months from the date this Circular takes effect. The specific total amount of recapitalization shall be decided by the Governor of the State Bank of Vietnam.

2. Interest rate for recapitalization:

a) The interest rate for recapitalization by the State Bank of Vietnam to the bank shall be lower than the interest rate of the bank's loan to customers by 1.5% per year at the same time period. The overdue interest rate equals 150% of the recapitalization interest rate within the term;

b) On the first working day of each month, the bank shall have the responsibility to pay the previous month's recapitalization interest to the State Bank of Vietnam.

3. Term of recapitalization: except in cases where the recapitalized debt is recovered according to the notification of the State Bank of Vietnam stipulated in point d, Clause 5, Article 8 of this Decree, the term of recapitalization for housing support loans each time is 364 days and automatically extended for the remaining recapitalized debt at the due date by one (one) period equal to the initial recapitalization term. The automatic extension can be extended up to June 1, 2023. The remaining customer debt at the bank after June 1, 2023 shall be converted to a loan from the bank's own capital.

4. Disbursement and recapitalization: monthly, based on the results of housing support loans granted by the bank, the State Bank of Vietnam shall implement disbursement or recovery of recapitalized debt from the bank, ensuring that the bank's recapitalized debt at the State Bank of Vietnam does not exceed the outstanding loan balance of the bank to customers at the time of disbursement or debt recovery.

a) The State Bank of Vietnam signs a principle contract for recapitalization regarding housing support loans with each bank;

c) In case of recapitalization disbursement:

ii) Within one working day from the date of receiving the complete file from the bank, the Credit Department shall seek opinions from the Monetary Policy Department, the Inspection and Supervision Agency of the Bank about the bank's request for recapitalization loan;

iii) Within a maximum of two working days, the units mentioned in point c(ii) of this clause shall provide their opinions in writing to the Credit Department for consolidation and submission to the Governor of the State Bank of Vietnam for approval of the recapitalization amount for the bank;

d) In case of recapitalized debt recovery:

i) Within two working days from the date of receiving the report on the results of housing support loans from the bank, the State Bank of Vietnam (Credit Department) shall determine and notify the State Bank of Vietnam Trading Department and the bank of the principal recapitalized debt that the bank must repay to the State Bank of Vietnam;

ii) Within one working day from the date of receiving the notification from the State Bank of Vietnam (Credit Department), the bank shall have the responsibility to repay the principal recapitalized debt to the State Bank of Vietnam;

iii) The recovery of the principal recapitalized debt shall be deducted sequentially from the promissory notes of the bank at the State Bank of Vietnam in chronological order of the promissory notes, starting from the first promissory note;

iv) By June 1, 2023, the bank must repay the entire principal and interest of the recapitalized loan to the State Bank of Vietnam.

6. Handling of non-payment on schedule:

In case the bank violates the repayment of principal and interest as prescribed in this Circular, the State Bank of Vietnam shall transfer the debt (principal and interest) to overdue debt and apply the overdue interest rate from the date of overdue. At the same time, the State Bank of Vietnam shall recover the overdue debt according to the following priority order:

a) Deduct from the bank's account at the State Bank;

b) Collect overdue principal and interest from other sources (if any) of the bank;

c) Other methods prescribed by law.

Chapter IV

IMPLEMENTATION AND EFFECTIVE PROVISIONS

Article 9. Customer Responsibilities

1. Comply with the laws on housing support loans and the commitments made in the credit contracts with banks.

2. Bear legal responsibility for the accuracy of the information and documents provided to banks for assessment and loan decision-making.

1. Issue guidelines on housing support loans within the system in accordance with this Circular and relevant laws.

2. Monitor, account for, and manage separately the housing support loans.

1. Credit Department:

a) Take the lead and coordinate with the Monetary Policy Department, Banking Inspection and Supervision Agency in advising the Governor of the State Bank of Vietnam on issues arising during the implementation of this Circular.

b) Regularly compile and report monthly to the Governor of the State Bank of Vietnam, and send copies to the Monetary Policy Department and Banking Inspection and Supervision Agency on the results of housing support loans by banks.

c) Propose measures to monitor and advise the Governor of the State Bank of Vietnam to decide on the specific total amount of refinancing funds and the end date for disbursing such funds as stipulated in this Circular.

d) Monitor and compile the capital needs of banks for lending to enterprises. Within a maximum of three working days from the date of receiving the bank's report as stipulated in Clause 4, Article 10 of this Circular, notify the bank about the available refinancing funds for this purpose.

2. Department of Monetary Policy:

a) Coordinate with the Credit Department and related units to handle issues arising during the implementation of this Circular.

b) Take the lead and coordinate with the Credit Department, Banking Inspection and Supervision Agency to determine and submit to the Governor of the State Bank of Vietnam the interest rate for housing support loans as stipulated in Clause 3, Article 4 of this Circular.

3. Trading Department:

a) Draft and implement the signing of the principle contract on housing support loans between the State Bank of Vietnam and banks; disburse funds, collect principal; calculate, notify and collect interest; account for and monitor the housing support refinancing fund for banks.

b) Coordinate with the Credit Department and related units to handle issues arising during the implementation of this Circular.

4. Financial Accounting Department:

Lead the accounting treatment related to housing support loans as prescribed in this Circular.

5. Banking Inspection and Supervision Agency:

a) Conduct inspections and supervision of banks' lending to customers in accordance with this Circular and relevant legal documents.

b) Coordinate with the Credit Department and related units to handle issues arising during the implementation of this Circular.

6. Branches of the State Bank of Vietnam in provinces and centrally-administered cities shall monitor and coordinate in handling issues arising during the implementation of housing support loans in their respective areas.

Article 12. Implementation Provisions

1. This Circular takes effect from June 1, 2013.