Circular No. 13/2022/TT-NHNN amending and supplementing certain provisions of Circular No. 08/2021/TT-NHNN dated July 6, 2021, issued by the Governor of the State Bank of Vietnam on special loans for credit institutions under special control.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 08/2021/TT-NHNN dated July 6, 2021 issued by the Governor of the State Bank of Vietnam on special loans for credit institutions under special control

The Governor of the State Bank of Vietnam issues this Circular to amend and supplement certain provisions of Circular No. 08/2021/TT-NHNN dated July 6, 2021 issued by the Governor of the State Bank of Vietnam on special loans for credit institutions under special control.subject to 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 a Circular amending and supplementing certain Articles of Circular No. 08/2021/TT-NHNN dated July 6, 2021, issued by the Governor of the State Bank of Vietnam, concerning special loans for credit institutions subject to special control.

Article 1. Amending and supplementing certain provisions of Circular No. 08/2021/TT-NHNN dated July 6, 2021 issued by the Governor of the State Bank of Vietnam on special loans for credit institutions under special control.

1. Models

a) Amend and supplement Point a Clause 2 as follows:

"a) The value of collateral assets specified in Clause 1 and Clause 6 of this Article shall be determined according to Appendix IV attached hereto;"

b) Amend and supplement Point c Clause 2 as follows:

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

"(i) For negotiable instruments specified in point a of Clause 1 of this Article, TL shall be equal to the minimum ratio between the value of the negotiable instrument and the amount of secured loan by pledge of negotiable instruments provided by the State Bank of Vietnam to credit institutions in accordance with the regulations of the State Bank of Vietnam during each period;"

"(ii) For collateral assets specified in points b and c of Clause 1 and Clause 6 of this Article, TL shall be 120%;"

c) Amending and supplementing Clause 3 as follows:

"3. In case the collateral asset specified in point c of Clause 1 of this Article does not meet the conditions prescribed in Clause 2 of Article 13 of this Circular, leading to the total converted value of eligible collateral assets being lower than the principal balance of the special loan, the borrower must complete the implementation of the provisions at point a of Clause 4 and point a of Clause 5 of this Article so that the total converted value of eligible collateral assets is not lower than the principal balance of the special loan within ten working days from the date when the total converted value of eligible collateral assets is lower than the principal balance of the special loan."

d) Add Clause 6 as follows:

"6. In case the borrower has fully utilized the collateral assets specified in Clause 1 of this Article, the borrower may use the following assets as collateral for special loans, extension of special loans, or to implement Clause 2 of Article 6 of this Circular without having to apply the provisions of Clauses 3, 4, and 5 of this Article to outstanding special loans:"

"a) Mortgage the right to claim arising from the credit granted by the borrower to customers (excluding credit institutions);"

"b) Mortgage the receivable interest arising from the credit granted by the borrower to customers (excluding credit institutions)."

2. Amending and supplementing Clause 3 of Article 13 as follows:

"3. The credit granted at Clause 6 of Article 12 of this Circular is currently secured by assets."

3. Amend and supplement Article 15 as follows:

a) Amendments and supplements to Point a Clause 3 as follows:

"a) In case the borrower has recovered funds from the right to claim or receivable interest as collateral for the special loan (hereinafter referred to as recovered debt), within the first five working days of the month, the borrower must repay the principal of this special loan in the order of the oldest remaining promissory note, the amount repaid being equal to the total amount of recovered debt generated in the preceding month;"

"b) Amending and supplementing point d of Clause 5 as follows:"

"d) Recovering the principal and interest of the special loan from the funds recovered by the borrower from the disposal of collateral assets specified in points b and c of Clause 1 and Clause 6 of Article 12 of this Circular;"

"4. Amending and supplementing Article 16 as follows:"

a) Amending and supplementing point b Clause 2 as follows:

"b) Specific opinions on whether: The credit institution is at risk of losing its ability to pay or has lost its ability to pay, threatening the stability of the system; the credit institution has fully utilized the collateral assets specified in Clause 1 of Article 12 of this Circular in cases where the credit institution requests to use the collateral assets specified in Clause 6 of Article 12 of this Circular;"

"b) Amending and supplementing point d of Clause 5 (which has been amended and supplemented by Clause 4 of Article 2 of Circular No. 02/2022/TT-NHNN dated March 31, 2022 amending and supplementing certain provisions of Circular No. 08/2021/TT-NHNN) as follows:"

"d) Opinions on the compliance of information about collateral assets in the Collateral Asset List with the provisions of Article 13 of this Circular (except in cases where the credit institution requests a special loan subject to micro-prudential inspection and supervision by the State Bank of Vietnam branch in the province/city) or opinions on the compliance of information about collateral assets in the Collateral Asset List with the content of collateral assets for the special loan to support liquidity approved in the restructuring plan or transfer plan (if any) (except in cases where the restructuring plan includes the content of collateral assets for the special loan to support liquidity approved by the State Bank of Vietnam branch in the province/city) based on the Collateral Asset List provided by the credit institution in accordance with point d of Clause 1 of this Article;"

5. Amend and supplement Article 18 as follows:

a) Amend and supplement Point a Clause 2 as follows:

"a) The operation status and payment capacity of the credit institution; regarding the fact that the credit institution has fully utilized the collateral assets specified in Clause 1 of Article 12 of this Circular in cases where the credit institution requests to use the collateral assets specified in Clause 6 of Article 12 of this Circular;"

b) Amending and supplementing Point d of Clause 5 as follows:

"d) Opinions on the compliance of information about collateral assets in the Collateral Asset List with the provisions of Article 13 of this Circular (except in cases where the credit institution requests an extension of a special loan subject to micro-prudential inspection and supervision by the State Bank of Vietnam branch in the province/city) based on the Collateral Asset List provided by the credit institution in accordance with point d of Clause 1 of this Article;"

6. Amending and supplementing Article 23 as follows:

"a) Amending and supplementing Clause 2 (which has been amended and supplemented by Clause 3 of Article 2 of Circular No. 02/2022/TT-NHNN dated March 31, 2022 amending and supplementing certain provisions of Circular No. 08/2021/TT-NHNN) as follows:"

"2. Responsible for:"

"a) Collateral assets for special loans meeting all conditions stipulated in Article 13 of this Circular or consistent with the content of collateral assets in the restructuring plan or transfer plan already approved (if any);"

"b) Using only the collateral assets specified in Clause 6 of Article 12 to secure special loans only after fully utilizing the collateral assets specified in Clause 1 of Article 12 of this Circular;"

"c) The credit provision under Clause 6, Article 12 of this Circular must comply with the provisions of the law on credit activities."

b) Amend and supplement Clause 4 as follows:

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

"a) Safeguarding and keeping separate the credit files that give rise to claims for debt recovery and interest receivable being used as collateral for the special loan;"

"b) Not using the assets pledged or mortgaged 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 specified in Clause 3, Article 12 of this Circular or when all the collateral specified in Clause 1, Article 12 of this Circular has been utilized;"

"đ) Reporting to the Special Supervisory Board the amount of debt recovered as stipulated in point a, Clause 3, Article 15 of this Circular within three working days from the date of occurrence of the debt recovery amount."

"7. Amend and supplement point đ, Clause 4, Article 26 as follows:"

"đ) Cooperating with the State Bank of Vietnam Trading Department to implement the provisions at point d, Clause 3 of this Article; notifying in writing the State Bank of Vietnam Trading Department about the completion of accepting the mortgage of the collateral being claims for debt recovery and interest receivable supplemented by the borrower (except in cases where the special loan is recorded at the State Bank of Vietnam branch in the province/city and the borrower does not replace the collateral as negotiable instruments); notifying in writing the credit organization about the deduction from the credit organization's account to recover debts and implementing the provisions at points a, b, đ, e, Clause 5, Clause 6, Article 15 of this Circular for the special loan recorded at the State Bank of Vietnam branch in the province/city;"

"8. Amend and supplement point a (iv), Clause 4, Article 27 as follows:"

"(iv) A list of collateral meeting the conditions prescribed in Article 13 of this Circular as set out in Appendix VII issued together with this Circular, the conversion rate of collateral (TL) equals 100%; the total converted value of the collateral meeting the conditions shall not be lower than the amount of the special loan requested for extension;"

"Article 2. Supplement, replace, and abolish some points, clauses, articles, and appendices of Circular No. 08/2021/TT-NHNN"

"1. Delete point d, Clause 1, Article 12."

"2. Replace Appendix III, Appendix IV, and Appendix VII issued together with Circular No. 08/2021/TT-NHNN with Appendix III, Appendix IV, and Appendix VII issued together with this Circular."

This Circular takes effect from December 25, 2025/.

"The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam; the Deposit Insurance Corporation of Vietnam; credit organizations are responsible for organizing the implementation of this Circular."

Article 4. Implementation provisions

"1. This Circular takes effect from October 28, 2022."

"2. From the date this Circular takes effect, for special loans arising from October 27, 2021, and still having outstanding balances on the date this Circular takes effect, based on applying the conversion rate of collateral prescribed in this Circular, credit organizations may continue to borrow specially using the collateral currently mortgaged at the State Bank of Vietnam, ensuring that the total converted value of the collateral meeting the conditions is not lower than the total amount of the special loan."