Decision No. 199/QD-NH1 Regarding the amendment and supplementation of certain articles of the Short-term Credit Regulations issued together with Decision No. 198/QD-NH1 dated September 16, 1994 of the Governor of the State Bank.

Pursuant to …;

Regarding the amendment and supplementation of certain articles of the Short-term Credit Regulations issued together with
Decision No. 198/QĐ-NH1 dated September 16, 1994 of the Governor of the State Bank of Vietnam

GOVERNOR OF THE STATE BANK OF VIETNAM

On the basis of the National Bank of Vietnam Ordinance, the Banking Ordinance, the Credit Cooperative Ordinance, and the Financial Company Ordinance dated May 23, 1990;

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

DECISION:

Article 1. Amend and supplement certain clauses of the Short-term Credit Regulations issued together with Decision No. 198/QĐ-NH1 dated September 16, 1994 of the Governor of the State Bank of Vietnam:

1. Clause 4.1, Point 4.1.2 shall be amended as follows: "The project or loan must be economically viable, with identified sources to repay the debt. The production and business results of the borrower must not incur losses and must not have overdue debts with the bank. In the following specific cases, credit organizations may consider granting further loans:

a. Enterprises that fall under the category eligible for state subsidies according to policy.

b. The production and business results of the borrower, which is a state-owned enterprise, are currently incurring losses, but there is a new production and business plan that can effectively overcome the losses to repay the bank's debt; such a plan must be accepted by the relevant ministry or agency (for central enterprises) or by the provincial People's Committee (for local enterprises).

c. The borrower has overdue debts with the bank, but these overdue debts are due to changes in state policies or force majeure."

2. Clause 4 of Article 4, Point 4.1.5 shall be amended as follows: "The borrower must implement measures to ensure their obligation to repay the debt (the obligation to repay includes: principal, interest, and late interest penalties), except where otherwise provided by law. The selection of security measures such as mortgage, pledge, guarantee, etc., is decided by the credit organization on a case-by-case basis for each project or loan. The procedures for mortgage, pledge, and guarantee shall be carried out in accordance with current regulations on mortgage, pledge, and guarantee of bank loans."

3. Article 11 shall abolish the clause "In cases where lending exceeds the prescribed limit, it must be approved by the Governor of the State Bank of Vietnam."

4. Article 19 shall be amended as follows: "Debt collection shall be conducted according to the repayment period specified in the agreement. The borrower may repay the debt ahead of schedule and must proactively repay the credit organization when the repayment period arrives as stipulated in Article 13 of this Regulation. If the borrower fails to repay the debt on time due to objective reasons and provides a written explanation requesting an extension, the credit organization shall consider extending the repayment period based on the actual difficulties, with the total extension period not exceeding one production cycle of the borrowing entity. For cases of difficulty caused by changes in state policies or force majeure, the credit organization may consider extending the repayment period longer, but the total extension period shall not exceed twelve months."

5. Supplement: "Article 26a. Debt Purchase and Sale between Credit Organizations:

Credit organizations are allowed to engage in the purchase and sale of short-term debts among themselves. The debt purchase and sale operations between credit organizations shall be carried out in accordance with the debt purchase and sale rules issued by the Governor of the State Bank of Vietnam."

Article 2. This Decision takes effect 15 days from the date of signature.

Article 3. The heads of units under the State Bank of Vietnam; the Directors of provincial and centrally-run city branches of the State Bank; the Chairmen of the Boards of Management and General Managers (Directors) of credit organizations shall be responsible for implementing this Decision.