Circular No. 15/2022/TT-NHNN on refinancing based on special bonds of the Vietnam Asset Management Company

CIRCULAR

Regulations on refinancing based on special bonds of the Vietnam Asset Management Company

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

Pursuant to the Law on Credit Organizations dated June 16, 2010; THE LAW AMENDING AND SUPPLEMENTING SEVERAL PROVISIONS OF THE LAW ON CREDIT ORGANIZATIONS 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 Decree No. 53/2013/NĐ-CP dated May 18, 2013 of the Government on the establishment, organization, and operation of the Vietnam Asset Management Company; Decree No. 34/2015/NĐ-CP dated March 31, 2015 and Decree No. 18/2016/NĐ-CP dated March 18, 2016 of the Government amending and supplementing certain articles of Decree No. 53/2013/NĐ-CP dated May 18, 2013 of the Government on the establishment, organization, and operation of the Vietnam Asset Management Company (hereinafter referred to as Decree No. 53/2013/NĐ-CP);

Article 1.

The Governor of the State Bank of Vietnam promulgates this Circular on refinancing based on special bonds issued by the Vietnam Asset Management Company.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the refinancing in Vietnamese dong by the State Bank of Vietnam (hereinafter referred to as the State Bank) for credit institutions based on special bonds issued by the Vietnam Asset Management Company (hereinafter referred to as special bonds) under Decree No. 53/2013/NĐ-CP.

Article 2. Applicability

1. Credit institutions as defined in Clause 1, Article 4 of Decree No. 53/2013/NĐ-CP owning special bonds (hereinafter referred to as credit institutions).

2. Entities related to refinancing based on special bonds.

Article 3. Purpose of refinancing

The State Bank provides refinancing based on special bonds to support the operational capital of credit institutions during the process of handling non-performing loans under Decree No. 53/2013/NĐ-CP.

Chapter II

SPECIFIC PROVISIONS

Article 4. Conditions for special bonds as the basis for refinancing and extension of refinancing

Special bonds serving as the basis for refinancing and extension of refinancing must satisfy all of the following conditions:

1. The special bonds are legally owned by credit institutions and are currently deposited with the State Bank's Trading Center.

2. They are not special bonds currently undergoing settlement.

3. They are not included in the list of special bonds that credit institutions are requesting the State Bank to consider extending the term according to the regulations of the State Bank on the purchase, sale, and handling of non-performing assets of the Vietnam Asset Management Company (hereinafter referred to as the Asset Management Company).

4. On the date when the credit institution prepares the list of special bonds as the basis for refinancing and extension of refinancing and the date when the credit institution updates the list of special bonds according to Clause 5, Article 10 of this Circular, the remaining term of the special bonds must be at least six months longer than the requested refinancing and extension of refinancing terms.

Article 5. Conditions for refinancing

The State Bank considers and decides to provide refinancing to credit institutions that meet all of the following conditions:

1. The credit institution is not in a period of special control or being penalized according to Article 15 of this Circular.

2. The credit institution has established risk provisions for all special bonds it owns according to the law or approved by the competent authority within twelve consecutive months prior to the date the credit institution submits the loan application for refinancing.

3. The credit institution complies with the safety ratio requirements stipulated in Clause 1, Article 130 of the Law on Credit Institutions (as amended and supplemented) and the regulations of the State Bank within twelve consecutive months prior to the date the credit institution submits the loan application for refinancing.

4. The special bonds serving as the basis for refinancing satisfy all conditions prescribed in Article 4 of this Circular.

Article 6. Amount of Refinancing Capital

1. The amount of refinancing capital shall be calculated according to the formula prescribed in Clause 2 of this Article but shall not exceed the amount requested for refinancing capital borrowing by the credit institution.

2. Formula for calculating the amount of refinancing capital:

ST = TL × (MG - DPRR - TN)

Where:

ST is the amount of refinancing capital.

TL is the refinancing ratio determined in accordance with the provisions set out in Appendix No. 01 issued together with this Circular.

MG is the total face value of special bonds listed in the Special Bond Schedule serving as the basis for refinancing capital.

DPRR is the total risk reserve already established for special bonds listed in the Special Bond Schedule serving as the basis for refinancing capital.

TN is the total amount of debt recovered listed in the Special Bond Schedule serving as the basis for refinancing capital.

Article 7. Conditions for Extending Refinancing Capital

The State Bank shall consider and decide on extending refinancing capital for credit institutions that fully meet the following conditions:

1. The credit institution is not in a period of special control or being penalized according to Article 15 of this Circular.

2. The credit institution has established risk reserves for all special bonds it owns in accordance with the law or approved documents from competent authorities within the 12 months immediately preceding the date the credit institution submits the application for extension of refinancing capital borrowing.

3. The credit institution is experiencing difficulties in payment capacity.

4. The special bonds serving as the basis for extending refinancing capital fully meet the conditions stipulated in Article 4 of this Circular.

5. The total face value of special bonds serving as the basis for extending refinancing capital must ensure:

Where:

MG is the total face value of special bonds listed in the Special Bond Schedule serving as the basis for extending refinancing capital.

ST is the amount of refinancing capital the credit institution requests to extend borrowing.

TL is the extension refinancing ratio determined in accordance with the provisions set out in Appendix No. 01 issued together with this Circular.

DPRR is the total risk reserve already established for special bonds listed in the Special Bond Schedule serving as the basis for extending refinancing capital.

TN is the total amount of debt recovered listed in the Special Bond Schedule serving as the basis for extending refinancing capital.

Article 8. Interest Rates

1. The interest rate for refinancing capital and extended refinancing capital based on special bonds is the interest rate for refinancing capital loans based on special bonds decided by the competent authority in accordance with Clause 4 of Article 20 of Decree No. 53/2013/NĐ-CP at the time the refinancing capital is disbursed or extended.

2. The overdue interest rate for the principal of refinancing capital is 150% of the interest rate for the period within the term of the refinancing capital loan at the time the refinancing capital becomes overdue.

3. The State Bank does not apply an interest rate for overdue interest on the refinancing capital loan based on special bonds.

Article 9. Term of Refinancing Capital, Extension of Refinancing Capital

1. The term of refinancing capital based on special bonds is decided by the State Bank, less than 12 months and not exceeding the remaining term of the earliest maturing special bond in the Special Bond Schedule serving as the basis for refinancing capital borrowing.

2. Each extension period of refinancing capital is decided by the State Bank, not exceeding the term of refinancing capital and not exceeding the remaining term of the earliest maturing special bond in the Special Bond Schedule serving as the basis for extending refinancing capital; the total period of refinancing capital and its extension is less than 12 months.

Article 10. Documents for requesting refinancing loans and extension of refinancing loans

1. Documents for requesting refinancing loans include:

a) A loan application form for refinancing according to Appendix No. 02 issued together with this Circular;

b) A list of special bonds serving as the basis for refinancing loans according to Appendix No. 04 issued together with this Circular (two copies).

2. Documents for requesting extension of refinancing loans include:

a) An application form for extending refinancing loans according to Appendix No. 03 issued together with this Circular;

b) A list of special bonds serving as the basis for extending refinancing loans according to Appendix No. 04 issued together with this Circular (two copies);

c) A report explaining the request for extending refinancing loans, which must at least include: The situation of difficulties in payment capacity of credit institutions; compliance with the provisions of Article 7 of this Circular by credit institutions; measures that credit institutions plan to apply to overcome difficulties in payment capacity and repayment of refinancing loans.

3. All documents in the application package must be prepared in Vietnamese, signed by a duly authorized representative of the credit institution; they can be original or certified copies issued from the original book or notarized copies or copies presented along with the original for verification.

4. Credit institutions shall submit the application package directly or through postal services to the headquarters of the State Bank of Vietnam (Reception and Result Delivery Department) in accordance with Clause 1 and 2 of this Article. After receiving the complete application package from the credit institution, the State Bank will proceed with administrative procedures according to the regulations on handling administrative procedures of the State Bank.

5. When there is a change in the figures of special bonds in the list of special bonds in the application package, the credit institution shall update and submit the updated application package directly or through postal services to the headquarters of the State Bank (Reception and Result Delivery Department). After receiving the updated application package, the State Bank will conclude the processing of the ongoing administrative procedure and proceed with new administrative procedures. The State Bank will reuse the application package and the previously updated application package (if any) of the credit institution for the new administrative procedure.

Article 11. Procedure for considering refinancing loans and extension of refinancing loans

1. When there is a need for refinancing loans or extension of refinancing loans, the credit institution shall submit one set of application documents in accordance with Article 10 of this Circular. In the case of requesting an extension of refinancing loans, the credit institution must submit the application package at least 45 working days before the due date for repayment. If the application package submitted by the credit institution is incomplete, within three working days from the date of receipt of the application package, the State Bank (Monetary Policy Department) shall issue a document requesting the credit institution to supplement and complete the application package.

2. Within a maximum period of two working days from the date of receipt of the complete application package from the credit institution, the Monetary Policy Department shall send the application package to the Banking Supervision Authority, the State Bank Trading Department, and the Asset Management Company for comments.

3. Within a maximum period of five working days from the date of receipt of the request document from the Monetary Policy Department as stipulated in Clause 2 of this Article:

a) State Bank Trading Department: Provide comments on whether the credit institution meets or does not meet the conditions specified in Clause 4 of Article 5 of this Circular (in the case of requesting refinancing loans) or Clause 4 of Article 7 of this Circular (in the case of requesting an extension of refinancing loans); Confirm the balance sheet of special bonds of the credit institution deposited with the State Bank Trading Department as the basis for refinancing or extending refinancing according to Appendix No. 05 issued together with this Circular and send it to the Monetary Policy Department and the Banking Supervision Authority;

b) Asset Management Company: Provide comments on whether the credit institution meets or does not meet the conditions specified in Clause 4 of Article 5 of this Circular (in the case of requesting refinancing loans) or Clauses 4 and 5 of Article 7 of this Circular (in the case of requesting an extension of refinancing loans); prepare a list of special bonds as the basis for refinancing or extending refinancing for the credit institution according to Appendix No. 06 issued together with this Circular and send it to the Monetary Policy Department and the Banking Supervision Authority.

4. Within a maximum period of seven working days from the date of receipt of the complete comments from the State Bank Trading Department and the Asset Management Company as stipulated in Clause 3 of this Article, the Banking Supervision Authority shall provide comments in writing to the Monetary Policy Department on the following contents:

a) Whether the credit institution meets or does not meet the conditions specified in Clauses 1, 2, and 3 of Article 5 of this Circular (in the case of requesting refinancing loans) or Clauses 1, 2, and 3 of Article 7 of this Circular (in the case of requesting an extension of refinancing loans);

b) Specific opinions on the refinancing ratio and the extension of refinancing ratio as prescribed in Appendix No. 01 issued together with this Circular.

5. Within a maximum period of seven working days from the date of receipt of the complete comments from the units as stipulated in Clauses 3 and 4 of this Article, the Monetary Policy Department shall compile and base on the objectives of monetary policy management to propose a solution to the request for refinancing loans or extension of refinancing loans from the credit institution:

a) In the case of proposing approval, the Monetary Policy Department shall send a document attached with a draft Decision on refinancing or a draft Decision on extending refinancing for comments from the Banking Supervision Authority, the State Bank Trading Department, and the Asset Management Company;

b) In the case of proposing non-approval, the Monetary Policy Department shall act in accordance with Clause 8 of this Article.

6. Within a maximum period of five working days from the date of receipt of the document requesting comments from the Monetary Policy Department as stipulated in point a of Clause 5 of this Article, the Banking Supervision Authority, the State Bank Trading Department, and the Asset Management Company shall provide comments in writing to the Monetary Policy Department:

a) Banking Inspection and Supervision Authority: Provide comments on the proposed handling measures of the Monetary Policy Department and draft Decisions on capital injection or draft Decisions on extension of capital injection for credit institutions;

b) State Bank Trading Center: Update to the latest available data on the list of special bond balances of credit institutions deposited at the Trading Center as the basis for capital injection or extension of capital injection according to Appendix No. 05 issued together with this Circular; Provide comments on draft Decisions on capital injection or draft Decisions on extension of capital injection for credit institutions;

c) Asset Management Company: Update to the latest available list of special bonds as the basis for capital injection or extension of capital injection for credit institutions according to Appendix No. 06 issued together with this Circular; Provide comments on draft Decisions on capital injection or draft Decisions on extension of capital injection for credit institutions;

7. Within a maximum period of three working days from the date of receipt of the updated application file in accordance with Clause 5, Article 10 of this Circular, the Monetary Policy Department shall send the updated application file to seek opinions from the Banking Inspection and Supervision Authority, the State Bank Trading Center, and the Asset Management Company as stipulated in Clauses 3, 4, or 6 of this Article;

8. Within a maximum period of seven working days from the date of receipt of complete opinions from the units as stipulated in Clause 4 or Clause 6 of this Article, the Monetary Policy Department shall propose and submit to the Governor of the State Bank for consideration and decision on whether to agree or disagree with the capital injection or extension of capital injection for credit institutions;

9. Within a maximum period of sixty days from the date of receipt of the complete application files of credit institutions as stipulated in Article 10 of this Circular, the State Bank shall issue Decisions on capital injection or Decisions on extension of capital injection (accompanied by lists of special bonds as the basis for capital injection and extension of capital injection) in cases where it agrees, or issue a document stating the reasons for disagreement and send it to the credit institution;

Article 12. Repayment of Re-capitalization Loans

1. When the re-capitalization loan reaches its maturity date, the credit institution must repay the principal and interest to the State Bank. In case the repayment due date falls on a public holiday or weekend, the term of the re-capitalization loan will be extended until the next working day;

2. The credit institution may repay the re-capitalization loan ahead of schedule either partially or in full;

3. The re-capitalization loan of the credit institution must be repaid ahead of schedule in the following cases:

a) Within five working days at the beginning of the next quarter, based on the content of the agreement on debt repayment substitution between the Asset Management Company and the credit institution in the contract for the purchase and sale of debts through special bonds, the Asset Management Company shall use the amount recovered from the debt that the credit institution is entitled to receive during the quarter from the non-performing debt purchased through special bonds serving as the basis for re-capitalization and extension of re-capitalization to repay the principal of the re-capitalization loan of the credit institution to the State Bank, and notify the State Bank Trading Center and the credit institution in writing about the amount of repayment for each special bond;

b) Within five working days from the date when the special bond serving as the basis for re-capitalization and extension of re-capitalization reaches its maturity date according to the State Bank's regulations on the purchase, sale, and handling of non-performing debts by the Asset Management Company, the credit institution must repay the re-capitalization loan (principal and interest) ahead of schedule to the State Bank. The amount of principal to be repaid for each special bond is calculated using the following formula:

PT_i = MG_i - DT_i

Where:

PTi is the principal of the re-capitalization loan to be repaid for special bond i;

MGi is the face value of special bond i after deducting risk provisions and the amount of recovered debt (corresponding figures for special bond i in the list of special bonds attached to the Decision on re-capitalization or Decision on extension of re-capitalization);

DTi is the principal of the re-capitalization loan already prepaid in accordance with point a of this Clause for special bond i;

c) Within seven working days from the date when the special bond no longer meets the conditions stipulated in Clause 3, Article 4 of this Circular, the credit institution must repay the re-capitalization loan (principal and interest) ahead of schedule to the State Bank, the amount of principal to be repaid is calculated according to the formula specified in point b of this Clause;

d) In case the credit institution has the need to lift the freeze on the special bond serving as the basis for re-capitalization and extension of re-capitalization, the credit institution must repay the re-capitalization loan (principal and interest) ahead of schedule to the State Bank, the amount of principal to be repaid is calculated according to the formula specified in point b of this Clause;

đ) Within five working days from the date of receipt of the unilateral termination notice of the contract for the purchase and sale of debts through special bonds serving as the basis for re-capitalization and extension of re-capitalization issued by the Asset Management Company in accordance with the State Bank's regulations on the purchase, sale, and handling of non-performing debts by the Asset Management Company, the credit institution must repay the entire principal and interest of the re-capitalization loan with the special bond subject to unilateral termination of the purchase and sale contract;

e) In case violations are discovered as stipulated in Article 15 of this Circular, the credit institution must repay the entire principal and interest of the re-capitalization loan with violations to the State Bank within a maximum period of ten working days from the date of receipt of the violation notification document as stipulated in point c, Clause 2, and point a, Clause 4 of Article 18 of this Circular.

Article 13. Handling of Credit Institutions for Failure to Repay Debts on Time

1. In cases where credit institutions fail to fully repay debts on time as stipulated in Clause 1, Article 12 of this Circular or fail to fully repay debts as stipulated at Point d, e, Clause 3, Article 12 of this Circular, the State Bank of Vietnam and the Asset Management Corporation shall implement the following measures:

a) The State Bank of Vietnam transfers the re-lending account to overdue tracking according to the regulations of the State Bank of Vietnam on methods of calculating and recording interest income and expenditure in the activities of receiving deposits and lending between the State Bank of Vietnam and credit institutions; applies interest rates on overdue re-lending principal according to the provisions of Clause 2, Article 8 of this Circular;

b) The State Bank of Vietnam implements the deduction from the credit institution's account at the State Bank of Vietnam starting from the next working day after the date of transferring to overdue tracking until all the principal and interest that the credit institution must repay are recovered and issues a written notice to the credit institution regarding the deduction from the account to recover the debt;

c) The Asset Management Corporation uses the amount recovered from the debt that the credit institution benefits from the bad debts purchased with special bonds to repay the re-lending loan of the credit institution to the State Bank of Vietnam;

d) The State Bank of Vietnam requires the credit institution to repay the debt from other sources (if available).

2. In cases where credit institutions fail to repay the amount due as stipulated at Point b, c, Clause 3, Article 12 of this Circular, the State Bank of Vietnam and the Asset Management Corporation shall implement the following measures:

a) The State Bank of Vietnam applies an interest rate equal to 150% of the current interest rate applied to re-lending on the unpaid principal within the period from the day following the date the credit institution must repay to the day the credit institution fully repays the unpaid principal according to the regulations;

b) The State Bank of Vietnam implements the deduction from the credit institution's account at the State Bank of Vietnam starting from the next working day after the date the credit institution must repay according to the regulations until all the amounts that the credit institution must repay are recovered and issues a written notice to the credit institution regarding the deduction from the account to recover the debt;

c) The Asset Management Corporation uses the amount recovered from the debt that the credit institution benefits from the bad debts purchased with special bonds to repay the re-lending loan of the credit institution to the State Bank of Vietnam;

d) The State Bank of Vietnam requires the credit institution to repay the debt from other sources (if available).

Article 14. Conversion of Re-lending Account into Special Loan Account

The conversion of the re-lending account based on special bonds into a special loan account shall be carried out according to the regulations of the State Bank of Vietnam on special loans for credit institutions under special control.

Article 15. Handling Violations

In case the State Bank of Vietnam receives information from competent authorities or through inspection and supervision work discovering that credit institutions provide inaccurate information and data in the loan application files for re-lending, extension of re-lending based on special bonds, the State Bank of Vietnam will not consider the loan application for re-lending, extension of re-lending based on special bonds of credit institutions within one year from the date of issuing the violation notification according to Point c, Clause 2, Point a, Clause 4, Article 18 of this Circular and stop disbursing funds according to all Decisions on re-lending based on special bonds (if any).

Chapter III

RESPONSIBILITIES OF CREDIT INSTITUTIONS AND RELATED UNITS

Article 16. Responsibilities of Credit Institutions

1. Provide complete, timely, and accurate files and documents related to re-lending and extension of re-lending based on special bonds to the State Bank of Vietnam. Bear legal responsibility for the accuracy and legality of the provided files and documents.

2. During the period of applying for re-lending, applying for extension of re-lending, if there is no longer a need for re-lending or extension of re-lending, the credit institution shall promptly report in writing to the State Bank of Vietnam (through the Results Delivery Unit) so that the State Bank of Vietnam stops considering and processing re-lending and extension of re-lending.

3. Implement signing the re-lending contract with the State Bank of Vietnam Trading Center according to the Decision of the Governor of the State Bank of Vietnam on re-lending based on special bonds for credit institutions.

4. Repay the re-lending loan according to this Circular and the re-lending contract.

5. Within three working days from the date of early repayment of the re-lending loan as stipulated at Point b, c, d, Clause 3, Article 12 of this Circular, report according to Appendix No. 07 issued together with this Circular to the State Bank of Vietnam.

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

Article 17. Responsibilities of the Asset Management Company

1. Provide opinions on the re-lending and extension of re-lending based on special bonds as prescribed in this Circular.

2. Monitor special bonds serving as the basis for re-lending and extension of re-lending according to the list of special bonds sent by the State Bank of Vietnam's Trading Department as stipulated in Point d, Clause 3, Article 18 of this Circular; provide the State Bank of Vietnam's Trading Department with information to monitor cases where credit institutions repay loans ahead of schedule as stipulated in Points b, c, d, đ, Clause 3, Article 12 of this Circular.

3. Implement the provisions set out in Point a, Clause 3, Article 12, Point c, Clause 1, and Point c, Clause 2, Article 13 of this Circular.

4. Serve as the focal point to coordinate with credit institutions and related units to implement measures to handle non-performing debts and collateral assets purchased with special bonds to repay re-lending loans from credit institutions to the State Bank of Vietnam.

5. Notify the State Bank of Vietnam's Trading Department, Banking Inspection and Supervision Authority, in writing within three working days from the date of occurrence of the following cases: The Asset Management Company unilaterally terminates the debt purchase and sale contract based on special bonds serving as the basis for re-lending and extension of re-lending; special bonds serving as the basis for re-lending and extension of re-lending have reached their maturity date or no longer meet the conditions stipulated in Clause 3, Article 4 of this Circular.

Article 18. Responsibilities of Units under the State Bank

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 re-lending and extension of re-lending based on special bonds as prescribed in this Circular;

b) Serve as the focal point to address issues arising in connection with the provisions of this Circular;

c) Coordinate with relevant units to advise the Governor of the State Bank of Vietnam on the interest rate for re-lending based on special bonds to be submitted to the competent authority for decision as stipulated in Clause 4, Article 20 of Decree No. 53/2013/NĐ-CP.

2. Banking Inspection and Supervision Authority

a) Provide opinions on re-lending and extension of re-lending based on special bonds as prescribed in this Circular;

b) Serve as the focal point to coordinate with relevant units to submit to the Governor of the State Bank of Vietnam on the implementation of Point d, Clause 1, and Point d, Clause 2, Article 13 of this Circular;

c) In case of receiving notification from the competent authority or discovering through inspection and supervision that credit institutions under the micro-prudential inspection and supervision of the Banking Inspection and Supervision Authority violate the provisions of Article 15 of this Circular, the Banking Inspection and Supervision Authority shall issue a violation notice to the credit institution, and simultaneously send it to the Monetary Policy Department, the State Bank of Vietnam's Trading Department, and the Asset Management Company; the violation notice must at least contain the details of the credit institution's violation and the measures taken by the State Bank of Vietnam as prescribed in this Circular;

d) Inspect, supervise, and handle violations within its authority against credit institutions under the micro-prudential inspection and supervision of the Banking Inspection and Supervision Authority in implementing the provisions of this Circular.

3. State Bank of Vietnam's Trading Department

a) Provide opinions on re-lending and extension of re-lending based on special bonds as prescribed in this Circular;

b) Sign re-lending contracts, implement the freezing of special bonds serving as the basis for re-lending and extension of re-lending, disburse, extend, and recover re-lending loans according to this Circular, the Governor of the State Bank of Vietnam's decisions on re-lending and extension of re-lending based on special bonds for credit institutions, and relevant laws;

c) Implement the measures prescribed in Points a and b, Clause 1, and Points a and b, Clause 2, Article 13 of this Circular;

d) Lift the freeze on all special bonds listed in the Special Bond List attached to the Re-lending Decision and Extension of Re-lending Decision after the credit institution has fully repaid the principal and interest of the re-lending loan. Lift the freeze on corresponding special bonds after the credit institution has repaid the re-lending loan (principal and interest) with special bonds as stipulated in Points b, c, d, Clause 3, Article 12 of this Circular;

đ) Send the Asset Management Company the list of frozen and unfrozen special bonds within three working days from the date of freezing or lifting the freeze on special bonds; notify the Asset Management Company in writing about the credit institution's failure to repay the re-lending loan as stipulated in Points b, c, đ, e, Clause 3, Article 12 of this Circular so that the Asset Management Company can implement the provisions of Point c, Clause 1, and Point c, Clause 2, Article 13 of this Circular;

e) Within seven working days of the first month following the month with outstanding balance or changes in re-lending based on special bonds, the State Bank of Vietnam's Trading Department reports to the Governor of the State Bank of Vietnam, and simultaneously sends the Banking Inspection and Supervision Authority, the Monetary Policy Department the re-lending data according to Appendix No. 08 issued together with this Circular.

4. Branches of the State Bank of Vietnam in provinces and cities:

a) In case of receiving notification from the competent authority or discovering through inspection and supervision that credit institutions under the micro-prudential inspection and supervision of the branches of the State Bank of Vietnam in provinces and cities violate the provisions of Article 15 of this Circular, the branches of the State Bank of Vietnam in provinces and cities shall issue a violation notice to the credit institution, and simultaneously send it to the Monetary Policy Department, the Banking Inspection and Supervision Authority, the State Bank of Vietnam's Trading Department, and the Asset Management Company; the violation notice must at least contain the details of the credit institution's violation and the measures taken by the State Bank of Vietnam as prescribed in this Circular;

b) Inspect, supervise, and handle violations within its authority against credit institutions under the micro-prudential inspection and supervision of the branches of the State Bank of Vietnam in provinces and cities in implementing the provisions of this Circular.

5. Information Technology Department:

a) Serve as the coordinating entity, working with the State Bank of Vietnam Trading Department and related units to design and build software programs, install software programs, and ensure the computer network infrastructure for the refinancing business based on special bonds for credit organizations operating smoothly, safely, and securely;

b) Guide credit organizations to connect their networks with the State Bank of Vietnam to conduct refinancing transactions based on special bonds.

Chapter IV

IMPLEMENTING PROVISIONS

Article 19. Effective Date

1. This Circular takes effect from January 17, 2023.

2. From the date this Circular takes effect, Circular No. 18/2015/TT-NHNN dated October 22, 2015, issued by the Governor of the State Bank of Vietnam regarding refinancing based on special bonds of the Asset Management Corporation of Credit Organizations in Vietnam shall cease to be effective.

Article 20. Implementation

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam; the Asset Management Corporation and credit organizations are responsible for implementing this Circular./.