Circular No. 12/2020/TT-NHNN amending and supplementing certain provisions of Circular No. 05/2020/TT-NHNN dated May 7, 2020 on refinancing for the Vietnam Bank for Social Policies pursuant to Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing support policies for people affected by the COVID-19 pandemic.

CIRCULAR
Amending and supplementing some articles of Circular No. 05/2020/TT-NHNN dated May 7, 2020 on refinancing for the Vietnam Social Policy Bank under Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing policies to support people affected by the COVID-19 pandemic

May 2020 stipulates on refinancing for the Social Policy Bank pursuant to Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister regarding the implementation of support policies for people affected by the COVID-19 pandemic

society pursuant to Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister regarding the implementation of support policies for people facing difficulties due to the COVID-19 pandemic

the Prime Minister stipulates the implementation of support policies for people

encountering difficulties due to the COVID-19 pandemic

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

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

Pursuant to 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;

Pursuant to Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing policies to support people affected by the COVID-19 pandemic and Decision No. 32/2020/QĐ-TTg dated October 19, 2020 amending and supplementing some articles of Decision No. 15/2020/QĐ-TTg;

Article 1.

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing some articles of Circular No. 05/2020/TT-NHNN dated May 7, 2020 on refinancing for the Vietnam Social Policy Bank under Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing policies to support people affected by the COVID-19 pandemic (hereinafter referred to as Circular No. 05/2020/TT-NHNN).

Article 1. Amending and supplementing some articles of Circular No. 05/2020/TT-NHNN

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

"Article 1. Scope of regulation and subjects of application This Circular stipulates the State Bank of Vietnam (hereinafter referred to as the State Bank) providing refinancing to the Vietnam Social Policy Bank to lend to employers to pay wages for suspended work for workers according to Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing policies to support people affected by the COVID-19 pandemic (hereinafter referred to as Decision No. 15/2020/QĐ-TTg) and Decision No. 32/2020/QĐ-TTg dated October 19, 2020 amending and supplementing some articles of Decision No. 15/2020/QĐ-TTg dated April 24, 2020 of the Prime Minister on implementing policies to support people affected by the COVID-19 pandemic(hereinafter referred to as Decision No. 32/2020/QĐ-TTg).”

4. State Bank Branch in Border Province is the State Bank Branch in provinces sharing borders with China, Laos, and Cambodia.

"Article 2. Amount of refinancingThe State Bank provides refinancing to the Vietnam Social Policy Bank to lend to employers to pay wages for suspended work for workers according to Decision No. 15/2020/QĐ-TTg and Decision No. 32/2020/QĐ-TTg (hereinafter referred to as refinancing) with a maximum total amount of VND 16,000 billion (sixteen trillion dong)."

3. Clause 3 of Article 4 is amended and supplemented as follows:

"3. The disbursement period for refinancing runs from the date of signing the first debt receipt agreement until December 31, 2021."

4. Article 6 is amended and supplemented as follows:

a) Clause 3 is amended and supplemented as follows:

"3. Within three working days from the date the State Bank Branch receives the original Decision on refinancing as stipulated in Clause 2 of this Article, the State Bank Branch and the Vietnam Social Policy Bank shall execute a basic principle contract on refinancing with the contents as specified in Appendix II attached to this Circular."

b) Point a of Clause 4 is amended and supplemented as follows:

"a) Based on the basic principle contract on refinancing as stipulated in Clause 3 of this Article and the loan amount requested by eligible employers as prescribed in Decision No. 15/2020/QĐ-TTg and Decision No. 32/2020/QĐ-TTg, the Vietnam Social Policy Bank shall directly send or deliver through postal service one copy of the Application for Disbursement of Refinancing Fund as specified in Appendix III attached to this Circular to the State Bank (State Bank Branch)."

5. Article 7 is amended and supplemented as follows:

a) Clause 1, 2 are amended and supplemented as follows:

"1. When the refinancing loan reaches its maturity date, the Vietnam Social Policy Bank must repay the entire principal of the refinanced loan disbursed in accordance with Clause 4 of Article 6 of this Circular to the State Bank from the repayment of the employer who borrowed funds according to Decision No. 15/2020/QĐ-TTg and Decision No. 32/2020/QĐ-TTg (hereinafter referred to as the employer).2. In case the Vietnam Social Policy Bank has not fully disbursed the received refinancing amount as stipulated in Clause 4 of Article 6 of this Circular by January 31, 2021, before February 10, 2021, the Vietnam Social Policy Bank must repay the State Bank the un-disbursed amount in sequence starting from the earliest signed debt receipt agreement."

b) Clause 4 is amended and supplemented as follows:

"4. In case there is a payment from the employer, within ten working days at the beginning of the following month, the Vietnam Social Policy Bank must use the entire payment from the employer in that month to repay the refinanced loan in sequence starting from the earliest signed debt receipt agreement (including cases where the refinanced loan has been transferred to overdue monitoring, and the refinanced loan has not yet reached its maturity date), except for cases where the employer's loan has been waived according to Clause 4 of Article 17 of Decision No. 15/2020/QĐ-TTg."

c) Points c, d are added to Clause 5 as follows:

"c) In case the measures prescribed in point b of this Clause have not recovered the full amount of the refinanced loan that the Vietnam Social Policy Bank has not repaid timely and the interest as prescribed in point a of this Clause, the State Bank Branch will continue to monitor and deduct from the Vietnam Social Policy Bank's account at the State Bank until all debts are recovered;

d) The recovery of the refinanced loan and interest as prescribed in points b and c of this Clause shall be carried out in accordance with the State Bank's regulations on calculation and accounting methods for interest income and expenditure in the activities of receiving deposits and lending between the State Bank and credit institutions and other organizations."

6. Clause 4, 5 of Article 8 are amended and supplemented as follows:

"4. Prior to February 20, 2021, the Social Policy Bank shall submit a paper document directly or through postal service to report to the Governor of the State Bank of Vietnam on the figures of refinancing loans disbursed pursuant to Decisions No. 15/2020/QĐ-TTg and No. 32/2020/QĐ-TTg as set out in Appendix V attached hereto, simultaneously sending it to the Monetary Policy Department, the Banking Inspection and Supervision Authority, the State Bank of Vietnam Trading Department, and the Credit Department for Industries and Sectors; the data cut-off date shall be from the start of loan disbursement receipt to January 31, 2021.

5. Within ten working days at the beginning of the following month after the Social Policy Bank must repay the refinancing loans as stipulated in Clause 4, Article 7 of this Circular, the Social Policy Bank shall submit a paper document directly or through postal service to the State Bank of Vietnam (Monetary Policy Department, Banking Inspection and Supervision Authority, State Bank of Vietnam Trading Department, Credit Department for Industries and Sectors), reporting on the repayment of refinancing loans from the debt repayment of employers as set out in Appendix VI attached hereto; the data cut-off date shall be from the first day of the month when the employer's debt repayment occurs to the last day of the month when the Social Policy Bank must repay the refinancing loans.

Article 2.

 Replace Appendices I, II, III, IV, V, VI, VII issued together with Circular No. 05/2020/TT-NHNN with Appendices I, II, III, IV, V, VI, VII issued together with this Circular.

This Circular takes effect from December 25, 2025/.

1. After this Circular takes effect, the Social Policy Bank shall submit a loan application for refinancing to the State Bank of Vietnam to implement the refinancing procedures as provided for in Article 6 of Circular No. 05/2020/TT-NHNN (amended and supplemented by this Circular).

2. The Director of the Office, Heads 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; the Social Policy Bank shall be responsible for organizing the implementation of this Circular.

Article 4. Implementation provisions

This Circular shall take effect from November 11, 2020./.