Circular No. 11/2024/TT-NHNN amends and supplements certain provisions of Circular No. 16/2021/TT-NHNN dated November 10, 2021, issued by the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling corporate bonds.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 16/2021/TT-NHNN dated November 10, 2021 of the Governor of the State Bank of Vietnam on the organization of credit institutions and foreign bank branches purchasing and selling corporate bonds

Article 1. Amending and supplementing certain provisions of Circular No. 16/2021/TT-NHNN

1. Amending Clause 4 of Article 1 as follows: 

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

On the basis of Law on Credit Institutions dated January 18, 2024;

Decree No. "4. The purchase and sale of corporate bonds between credit institutions under special control and supporting credit institutions, and the mandatory transferor shall implement according to the restructuring plan of credit institutions under special control approved by the competent authority."

Article 1.

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing some articles of Circular No. 2. Supplementing Clause 14 to Article 4 as follows:

"14. The issuing enterprise must provide credit institutions with information about related parties as stipulated in the Law on Credit Institutions before the credit institution purchases corporate bonds from the issuing enterprise. Related parties of the issuing enterprise are organizations and individuals having relationships with the issuing enterprise as stipulated in Clause 24 of Article 4 of the Law on Credit Institutions.

Information about related parties who are individuals includes: full name; individual identification number; nationality, passport number, date of issue, place of issue for foreigners; relationship with the issuing enterprise.

Information about related parties who are organizations includes: name, business registration code, main office address of the enterprise, business registration certificate number or equivalent legal document; legal representative, relationship with the issuing enterprise."

3. Supplementing Clause 15 to Article 4 as follows:

"15. Credit institutions must use cashless payment services when performing payments in the activities of purchasing and selling corporate bonds in accordance with the laws on cashless payments."

"Monitoring and supervising the use of funds received from the issuance of corporate bonds by the issuing enterprise; if it is found that the issuing enterprise uses the funds from the issuance of corporate bonds for purposes other than those specified in the plan and commitments made to the credit institution, then the credit institution shall require the issuing enterprise to repurchase the corporate bonds ahead of schedule. In case the issuing enterprise does not repurchase the corporate bonds ahead of schedule as committed and requested by the credit institution, the credit institution shall recover the principal and interest of the corporate bonds in accordance with the laws."

"1. The total balance of corporate bonds purchased (including both corporate bonds issued by the enterprise and its related parties) shall be included in the total credit limit for a single customer, for a single customer and its related parties as stipulated in the Law on Credit Institutions and the regulations of the State Bank of Vietnam on limits and safety ratios in the operations of credit institutions."

3. ADD CLAUSE 15 to Article 4 as follows:

“15. Credit organizations must use cashless payment services when conducting payments in bond trading activities according to the laws on cashless payments.”

4. Amend and supplement Clause 2 of Article 7 as follows:

“Monitor and supervise the use of funds received from issuing bonds by the issuing enterprise; if it is found that the issuing enterprise uses the funds from issuing bonds for purposes other than those stated in the plan and commitments with credit organizations, then the credit organization shall require the issuing enterprise to repurchase the bonds ahead of schedule. In case the issuing enterprise does not repurchase the bonds ahead of schedule as committed and required by the credit organization, the credit organization shall implement measures to recover the principal and interest of the bonds in accordance with the law.”

5. Amend Clause 1 of Article 8 as follows:

“1. The total amount of corporate bonds purchased (including both corporate bonds issued by the corporation and those issued by related parties of the corporation) shall be included in the total credit limit for a single customer, as well as for a customer and its related parties, as stipulated in the Law on Credit Organizations and the regulations of the State Bank of Vietnam on limits and safety ratios in the operations of credit organizations.”

Article 2. Replacing phrases and abolishing certain provisions of Circular No. 16/2021/TT-NHNN

1. Replace the phrase "Law on Credit Organizations (amended and supplemented)" at Clause 1, Article 2, Clause 2 and Clause 4, Article 4, and Clause 1, Article 6 with the phrase "Law on Credit Organizations".

2. Abolish Clause 11 and Clause 12, Article 4 of Circular No. 16/2021/TT-NHNN.

This Circular takes effect from December 25, 2025/.

The Head of the Office, the Director of the Monetary Policy Department, Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally governed cities, credit organizations, and foreign bank branches are responsible for organizing the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect from August 12, 2024.

2. For corporate bond purchase and sale contracts signed before the date this Circular comes into force, credit organizations and customers continue to implement the contents of the corporate bond purchase and sale contracts they have signed in accordance with the laws in effect at the time of signing those contracts. Amendments and supplements to these contracts from the date this Circular comes into force shall only be made when such amendments and supplements comply with the provisions of this Circular./.