Circular No. 22/2014/TT-NHNN guiding the implementation of credit policies pursuant to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries.

CIRCULAR

Guidelines for implementing credit policies pursuant toDecree No. 67/2014/NĐ-CP

dated July 7, 2014 of the Government on certain policies for developing fisheries

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

No. 06/2013/UBTVQH13 dated March 18, 2013;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 89/2015/ND-CP dated October 7, 2015 of the Government amending and supplementing certain articles of Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on some policies for developing fisheries;

At the proposal of the Director of the Department of Credit for Economic Sectors;

The Governor of the State Bank of Vietnam issues this Circular guiding the implementation of credit policies pursuant to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries.

Article 1. Scope of Regulation and Applicability

This Circular stipulates the lending for ordering new construction and upgrading fishing vessels operating in distant waters, and providing services for distant water fishing operations; short-term working capital loans for distant water fishing operations and providing services for distant water fishing operations pursuant to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries (hereinafter referred to as Decree No. 67/2014/NĐ-CP).

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

b) Commercial banks established and operating under the Law on Credit Institutions;

c) Organizations and individuals related thereto.

Article 2. Principles of lending

1. Ship owners shall be responsible for using borrowed funds for their intended purposes and repaying principal and interest to commercial banks according to the credit agreement.

2. Commercial banks shall implement lending to ship owners in accordance with this Circular. Matters not specified in this Circular shall be implemented by commercial banks in accordance with current laws and regulations regarding lending by credit institutions to customers.

Article 3. Purpose of borrowing

Article 4. Borrowing Conditions

1. For lending for new construction and upgrading of fishing vessels and service vessels:

a) New ships must have a main engine power of 400HP or more; upgrading ships with a main engine power below 400HP to a main engine power of 400HP or more and upgrading the engine power of ships with a main engine power of 400HP or more;

b) Ship owners must be listed in the approved list of provincial People's Committees as being engaged in profitable fishing activities, having financial capacity, and having specific production and business plans;

c) Ship owners must commit to purchasing full insurance coverage for the hull, equipment, and fishing gear on board the ship (all-risk insurance) after completion of new construction or upgrading and before putting the ship into operation;

d) The loan plan must be assessed by commercial banks as effective and feasible.

a) Ship owners must be engaged in profitable fishing activities, have financial capacity, and have specific production and business plans;

b) The loan plan must be assessed by commercial banks as effective and feasible.

Article 5. Loan Limits, Interest Rates, and Terms

2. The State budget will subsidize part of the interest rate for lending for new construction and upgrading of fishing vessels. Procedures and processes for interest rate subsidies shall be carried out in accordance with guidelines issued by the Ministry of Finance.

3. Overdue interest rate: The overdue interest rate (including the portion subsidized by the State) shall be agreed upon between commercial banks and ship owners in accordance with the law and stipulated in the credit agreement.

4. Loan terms

b) The term for working capital lending shall be agreed upon between commercial banks and ship owners, but shall not exceed 12 months from the date of signing the credit agreement.

Article 6. Collateral

1. Commercial banks shall accept newly constructed or upgraded fishing vessels operating in distant waters and service vessels for distant water fishing operations as collateral for the loan. Registration of security transactions for newly constructed or upgraded vessels shall be carried out in accordance with current regulations.

Article 7. Classification of Debts and Risk Management

2. Mechanism for handling risks in cases where the cause is due to objective and force majeure factors affecting loans for new construction and upgrading of vessels, commercial banks shall handle them in accordance with Point b, Clause 2, Article 4 of Decree No. 67/2014/NĐ-CP.

3. In cases where ship owners fail to repay principal and interest due to other reasons, commercial banks shall handle them in accordance with the law.

1. The ship owner has the right to request loans with terms and loan limits lower than those specified in Clause 1 and Clause 4, Article 5 of this Circular to be consistent with their business plan and has the right to repay the loan ahead of schedule.

2. Provide complete, truthful information and bear responsibility under the law for the accuracy of the information and documents provided to commercial banks for assessment and loan decision-making.

3. In cases where the State budget recovers the interest subsidy amount due to the discovery of violations by the ship owner in the use of borrowed capital or overdue debts not caused by objective and force majeure reasons, the ship owner shall be responsible for returning the entire subsidized interest amount recovered to the commercial bank.

1. State-owned commercial banks holding controlling shares have the responsibility to develop plans, allocate capital sources, and actively implement lending to ship owners according to the provisions of Decree No. 67/2014/NĐ-CP and this Circular.

2. Based on this Circular and relevant laws, commercial banks shall establish internal regulations guiding lending to ship owners to ensure simple, quick procedures and safe lending capital.

3. Commercial banks may consider granting unsecured loans based on the control of cash flow for working capital loans to ship owners when they participate in production chains from extraction, processing to product consumption.

4. In cases where difficulties arise in lending capital to implement credit policies as stipulated in this Circular or when interest rates increase affecting business results, commercial banks shall report to the State Bank of Vietnam to obtain refinancing according to the Prime Minister's Decision.

5. Implement monitoring, inspection, and supervision of loans and manage separate loan files of ship owners to facilitate inspections and supervision by competent state authorities.

6. Report to the State Bank of Vietnam (Department of Credit for Economic Sectors) no later than the 10th day of each month (starting from October 2014) on the results of lending for distant sea fishing in the preceding month according to the attached form in this Circular.

7. Report to the State Bank of Vietnam, People's Committees of provinces and centrally governed cities about difficulties and obstacles encountered during the implementation of lending to be promptly addressed.

Article 10. Responsibilities of units under the State Bank of Vietnam

1. Department of Credit for Economic Sectors:

a) Take the lead and coordinate with the Monetary Policy Department, Banking Supervision Agency in advising the Governor of the State Bank of Vietnam to handle issues arising during the implementation of this Circular;

b) Regularly or at any time, compile and report to the Governor of the State Bank of Vietnam on the results of lending as prescribed in this Circular.

2. Department of Monetary Policy:

a) Advise the Governor of the State Bank of Vietnam to implement monetary policy tools as stipulated in Point d, Clause 4, Article 9 of Decree No. 67/2014/NĐ-CP;

b) Coordinate with the Department of Credit for Economic Sectors and related units to address issues arising during implementation.

3. Banking Inspection and Supervision Authority:

Conduct inspections and supervision of commercial banks' lending to ship owners as prescribed in this Circular;

b) Coordinate with the Department of Credit Policies for Economic Sectors and other relevant units to address issues arising during implementation.

4. Branches of the State Bank of Vietnam in provinces and centrally governed cities shall monitor and inspect the implementation of lending by commercial banks to ship owners in their areas; promptly report to the State Bank of Vietnam, People's Committees of provinces and centrally governed cities on the implementation results and any difficulties arising during implementation in their areas.

Article 11. Implementation Provisions

1. This Circular takes effect from August 25, 2014.

The Head of the Office, Heads of the Department of Credit for Economic Sectors, and Heads of units under the State Bank of Vietnam; Governors of State Bank branches in provinces and centrally governed cities; Chairmen of Boards of Directors, Chairmen of Management Councils, and General Directors of commercial banks, organizations, and individuals related to this matter are responsible for organizing the implementation of this Circular./.

STATE BANK OF VIETNAM...

REPORT ON THE RESULTS OF LENDING FOR DISTANT SEA FISHING ACCORDING TO CIRCULAR NO. .../2014/TT-NHNN

DATE... MONTH... YEAR... OF THE STATE BANK OF VIETNAM

Month... Year...

Unit: million dong, number of ships, customers

Note:

- Reporting date is the last day of the reported month

- Reporting format:

+ In writing: Department of Credit for Economic Sectors - State Bank of Vietnam - 25 Ly Thai To Street - Hoan Kiem District - Hanoi City;

+ Email: [email protected].

+ Contact: 0439360407 (extension 518058)