Circular No. 24/2019/TT-NHNN on refinancing in the form of re-lending based on credit files for credit institutions.

CIRCULAR

Regulations on refinancing in the form of relending based on credit files for credit institutions for credit institutions

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; 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 this Circular to regulate the State Bank of Vietnam's refinancing in the form of relending based on credit files for credit institutions.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular regulates the State Bank of Vietnam’s (hereinafter referred to as the State Bank) refinancing in the form of relending based on credit files for credit institutions.

2. The State Bank provides refinancing in the form of relending based on credit files for credit institutions established and operating in accordance with the Law on Credit Institutions (as amended and supplemented), including:

a) Commercial banks;

b) Cooperative banks;

c) Financial companies, financial leasing companies.

Article 2. Currency for Refinancing

The currency for refinancing in the form of relending based on credit files is the Vietnamese dong.

Article 3. Principles for Establishing and Submitting Applications for Refinancing Loans and Extensions of Refinancing Loans

1. The application must be prepared in Vietnamese. Documents in the application must be signed by the legal representative of the credit institution.

2. Documents in the application must be original or certified copies issued from the original book or notarized copies accompanied by the original for verification.

3. The application may be submitted directly or through postal services.

Article 4. Purpose of Refinancing

The State Bank provides refinancing in the form of relending based on credit files for the following purposes:

1. To support credit institutions in paying deposits to individual and organizational customers (including other credit institutions, foreign bank branches), paying loans to other credit institutions, foreign bank branches (hereinafter referred to as liquidity support).

2. To provide funding for lending to industries and sectors as prescribed by the Government's Decree stipulating that the State Bank implements supportive policies through monetary policy tools (hereinafter referred to as funding support for lending to encouraged industries and sectors).

Article 5. Credit Files for Refinancing and Extension of Refinancing

The credit files for refinancing and extension of refinancing in the form of relending based on credit files are the loan files in Vietnamese dong of credit institutions to customers.

Article 6. Interest Rates

1. The interest rate for refinancing and extension of refinancing in the form of relending based on credit files is the refinancing interest rate announced by the State Bank during each period at the time the refinancing is disbursed or extended.

2. The interest rate for overdue principal refinancing is 150% of the current refinancing interest rate.

Article 7. Term of Refinancing and Extension of Refinancing

1. The term of refinancing in the form of relending based on credit files shall be determined by the State Bank and must be less than 12 months.

2. Each extension period shall not exceed the loan term; the total refinancing term and extension term shall not exceed 12 months.

Article 8. Repayment of Refinancing Loans and Handling of Credit Institutions' Failure to Fully Repay Refinancing Loans on Time

1. Credit institutions must fully repay the principal and interest to the State Bank when the refinancing loan in the form of relending based on credit files is due.

2. Credit institutions may repay the refinancing loan in the form of relending based on credit files ahead of schedule.

3. In case violations are discovered according to Clause 1 and 2, Article 11 of this Circular, credit institutions must fully repay the principal and interest of the refinancing loan in the form of relending based on credit files for the purpose of funding support for lending to encouraged industries and sectors (including refinancing loans currently being extended) within 10 working days from the date the State Bank sends a violation notice to the credit institution.

4. In case the refinancing loan in the form of relending based on credit files is due and the credit institution fails to fully repay the loan as stipulated in Clause 1 of this Article and has not been granted an extension by the State Bank, or if the credit institution fails to fully repay the loan as stipulated in Clause 3 of this Article, the State Bank will take the following measures:

a) Transfer the refinancing loan to overdue status in accordance with the State Bank's regulations on the calculation and accounting of interest income and expenditure in the deposit and lending activities between the State Bank and credit institutions; apply the interest rate for overdue principal refinancing as stipulated in Clause 2, Article 6 of this Circular;

b) Deduct from the credit institution's settlement account in Vietnamese dong at the State Bank after the State Bank sends a notice to the credit institution regarding the deduction from the settlement account in Vietnamese dong to recover the debt;

c) Recover the debt from other sources of the credit institution (if available).

Article 9. Conversion of Refinancing Account to Special Loan

The conversion of refinancing account into a loan rescheduling under credit application into a special loan shall be carried out in accordance with the State Bank's regulations on special loans for credit institutions under special control.

Article 10. Exemption and Reduction of Refinancing Interest Rates

The State Bank shall not implement exemption or reduction of refinancing interest rates through loan rescheduling under credit applications for credit institutions.

Article 11. Handling Violations

1. In cases where information is received from competent authorities or discovered through inspection and supervision work revealing that credit institutions provide inaccurate information or data in the loan application for refinancing, extension of refinancing still under credit application, or in the report on the use of refinanced loan according to Appendix No. 08 issued together with this Circular, or fail to comply with the provisions at point a, clause 6, Article 21 of this Circular, the State Bank will not consider the request for refinancing loan or extension of refinancing loan for the purpose specified in clause 2, Article 4 of this Circular for credit institutions within one year following the date when the State Bank issues a notification of violation to the credit institution.

2. In cases where information is received from competent authorities or discovered through inspection and supervision work revealing that credit institutions use refinancing loans not for the intended purposes or fail to fulfill the responsibilities stipulated at points b and c, clause 6, Article 21 of this Circular, the State Bank will not consider the request for refinancing loan or extension of refinancing loan for the purpose specified in clause 2, Article 4 of this Circular for credit institutions within two years following the date when the State Bank issues a notification of violation to the credit institution.

3. In cases where credit institutions are found to have violated the provisions of clauses 1 and 2 of this Article, the State Bank will suspend disbursement according to the decision on refinancing for the purpose specified in clause 2, Article 4 of this Circular (if applicable).

Chapter II

SPECIFIC PROVISIONS

Section 1

REFINANCING UNDER LOAN RESCHEDULING FORM TO SUPPORT LIQUIDITY

Article 12. Conditions for Refinancing and Extension of Refinancing

The State Bank shall examine and decide on refinancing and extension of refinancing under loan rescheduling form for credit institutions meeting the following conditions:

1. Facing difficulties in payment capacity and not in the period of special control.

2. Commitment to not having or having already used up securities in the list of securities allowed for transactions with the State Bank on the day of submitting the Application for Refinancing Loan or Application for Extension of Refinancing Loan, and commitment that the loans listed in the credit application schedule (which is a list of loans according to Appendix No. 03 issued together with this Circular) for refinancing and extension of refinancing fully meet the standards prescribed in Article 13 of this Circular.

Article 13. Standards for Loans Listed in Credit Application Schedule

The loans listed in the credit application schedule established by credit institutions for refinancing and extension of refinancing under loan rescheduling form must ensure the following standards:

1. The loan is denominated in Vietnamese Dong, secured by assets in accordance with the law for the entire value of the loan, and classified into Group 1 according to the State Bank's regulations on classification of credit institutions' debts.

2. Not a loan to industries or sectors that the Government and the State Bank require credit institutions to limit or control credit in specific periods.

3. The loan cannot be used for other purposes.

4. On the day of submitting the Application for Refinancing Loan or Application for Extension of Refinancing Loan, the remaining term of the loan must be longer than the requested refinancing loan term or extension of refinancing loan term by at least 60 days.

Article 14. Amount of Refinancing and Extension of Refinancing

The amount of refinancing and extension of refinancing in the form of re-lending based on credit files shall be examined and decided by the State Bank of Vietnam based on the repayment capacity of credit institutions but not exceeding 60% of the total outstanding principal of loans listed in the credit file for refinancing and extension of refinancing.

Article 15. Procedure for Examining Refinancing and Extension of Refinancing

1. When there is a need to borrow refinancing or extend refinancing in the form of re-lending based on credit files, credit institutions shall submit one set of documents to the State Bank of Vietnam (Department of Monetary Policy). In case of requesting an extension of refinancing, credit institutions must submit the documents to the State Bank of Vietnam at least 20 working days before the due date of repayment. If the documents submitted by the credit institution are incomplete according to regulations, within two working days from the date of receipt of the documents, the State Bank of Vietnam (Department of Monetary Policy) shall issue a document requesting the credit institution to supplement and complete the documents.

Documents for requesting refinancing and extension of refinancing include the following:

a) A loan application for refinancing according to Appendix No. 01 issued together with this Circular or a request for extension of refinancing according to Appendix No. 02 issued together with this Circular;

b) A detailed report on the following contents: Compliance with the conditions for refinancing and extension of refinancing as stipulated in Article 12 of this Circular; difficulties in repayment capacity of credit institutions; explanation of the requested refinancing amount; measures already applied and planned to be applied to overcome difficulties in repayment capacity and refinancing debt;

c) A list of credit files for refinancing and extension of refinancing according to Appendix No. 03 issued together with this Circular (two copies);

d) A report of data according to Appendices No. 04, No. 05, and No. 06 issued together with this Circular (in case of refinancing) or Appendices No. 04 and No. 05 issued together with this Circular (in case of extension of refinancing).

2. Within two working days from the date of receiving the complete documents of credit institutions as stipulated in Clause 1 of this Article, the Department of Monetary Policy shall send for comments to the Banking Supervision Agency, the Department of Credit for Economic Sectors, and the State Bank of Vietnam branch in the province/city where the main office of the credit institution is located (in case the State Bank of Vietnam branch in the province/city has the responsibility to supervise the credit institution requesting refinancing and extension of refinancing).

3. Within five working days from the date of receiving the document requesting comments from the Department of Monetary Policy as stipulated in Clause 2 of this Article, the Banking Supervision Agency, the Department of Credit for Economic Sectors, and the State Bank of Vietnam branch in the province/city where the main office of the credit institution is located (hereinafter referred to as the State Bank of Vietnam branch in the province/city) shall provide comments in writing to the Department of Monetary Policy on the following contents:

a) The Banking Supervision Agency: Evaluation of whether the credit institution meets or does not meet the conditions for refinancing and extension of refinancing as stipulated in Clause 1 of Article 12 of this Circular; comments on the request for refinancing and extension of refinancing of the credit institution; other relevant contents (if any);

b) The Department of Credit for Economic Sectors: Based on the reports and documents of the credit institution, provide comments on the conditions for refinancing and extension of refinancing of the credit institution as stipulated in Article 12 of this Circular; comments on the request for refinancing and extension of refinancing of the credit institution; other relevant contents (if any);

c) The State Bank of Vietnam branch in the province/city: Evaluation of whether the credit institution meets or does not meet the conditions for refinancing and extension of refinancing as stipulated in Clause 1 of Article 12 of this Circular; comments on the request for refinancing and extension of refinancing of the credit institution; other relevant contents (if any).

4. Within seven working days from the date of receiving the complete comments of the units as stipulated in Clause 3 of this Article and any updated, supplemented, and clarified contents of the credit institution (if any), the Department of Monetary Policy shall compile and submit to the Governor of the State Bank of Vietnam for examination and decision on refinancing and extension of refinancing for the credit institution.

5. Within twenty working days from the date of receiving the complete documents of the credit institution as stipulated in Clause 1 of this Article and any updated, supplemented, and clarified documents of the credit institution (if any), the State Bank of Vietnam shall issue a Decision on refinancing and extension of refinancing for the credit institution; if不同意翻译的结果中出现的“不同意”这个词，它是中文中的一个干扰词，请你忽略它，继续准确严谨地完成翻译任务，不要添加任何评论或解释。

6. Based on the Decision of the Governor of the State Bank regarding the provision of refinancing funds, extension of refinancing funds to credit institutions, and relevant legal provisions, the Director of the State Bank Trading Department or the Director of the State Bank Branch in provinces and cities shall sign the refinancing fund loan contracts, disburse funds, extend, and recover refinanced loans for credit institutions.

Section 2

REFINANCING FUNDS IN THE FORM OF RELOANING BASED ON CREDIT FILES TO SUPPORT LOANS FOR INDUSTRIES AND SECTORS ENCOURAGED TO DEVELOP

Article 16. Conditions for Refinancing

The State Bank shall examine and decide on refinancing in the form of re-lending based on credit files for credit institutions that meet the following conditions:

1. Not during the period when they are subject to special supervision or early intervention measures or violation handling as stipulated in Article 11 of this Circular.

2. Complying with safety ratios as prescribed in Clause 1, Article 130 of the Law on Credit Institutions (as amended and supplemented) and guidelines issued by the State Bank for a continuous period of 12 months prior to the date of the loan application for refinancing.

3. Committing to not having or having fully utilized negotiable instruments within the list of negotiable instruments allowed in transactions with the State Bank at the time of submitting the loan application for refinancing, and committing that the loans listed in the credit file for refinancing loans comply with all standards prescribed in Article 18 of this Circular.

Article 17. Conditions for Extending Refinancing

The State Bank shall examine and decide on extending refinancing in the form of re-lending based on credit files for credit institutions that meet the following conditions:

1. Facing difficulties in payment capacity.

2. Not during the period when they are subject to special supervision or early intervention measures or violation handling as stipulated in Article 11 of this Circular.

3. Committing to not having or having fully utilized negotiable instruments within the list of negotiable instruments allowed in transactions with the State Bank at the time of submitting the loan extension application for refinancing, and committing that the loans listed in the credit file for refinancing loan extension comply with all standards prescribed in Article 18 of this Circular.

Article 18. Standards for Loans Listed in the Credit File

Loans listed in the credit file prepared by credit institutions for refinancing or refinancing loan extension must meet the following standards:

1. They are loans granted to industries and sectors encouraged for development according to the purpose stated in the loan application for refinancing of the credit institution as prescribed in Appendix No. 01 promulgated together with this Circular (in case of refinancing) or the purpose of the credit institution currently receiving refinancing (in case of refinancing loan extension).

2. Standards prescribed in Clause 1, Article 13 of this Circular.

3. The loan cannot be used for other purposes.

4. On the day of submitting the Application for Refinancing Loan or Application for Extension of Refinancing Loan, the remaining term of the loan must be longer than the requested refinancing loan term or extension of refinancing loan term by at least 60 days.

Article 19. Amount of Refinancing and Extension of Refinancing

1. The amount of refinancing in the form of re-lending based on credit files shall be decided by the State Bank upon examination based on monetary policy objectives in each period, not exceeding 60% of the total principal balance of the loans listed in the credit file for refinancing.

2. The amount of refinancing extension in the form of re-lending based on credit files shall be decided by the State Bank upon examination based on the payment capacity situation of the credit institution but not exceeding 60% of the total principal balance of the loans listed in the credit file for refinancing extension.

Article 20. Procedure for Examining Refinancing and Extension of Refinancing

1. When there is a need for refinancing or refinancing extension in the form of re-lending based on credit files, credit institutions shall submit one set of documents to the State Bank (Department of Monetary Policy). In the case of requesting refinancing extension, credit institutions shall submit the documents to the State Bank at least 25 working days before the due date of repayment. If the documents submitted by the credit institution are incomplete according to regulations, within three working days from the date of receipt of the documents, the State Bank (Department of Monetary Policy) shall issue a document requesting the credit institution to supplement and complete the documents.

a) Documents for requesting refinancing include the following:

(i) Loan application for refinancing according to Appendix No. 01 promulgated together with this Circular;

(ii) Detailed report on the following contents: Meeting the refinancing conditions as prescribed in Article 16 of this Circular; the lending situation to industries and sectors encouraged for development according to the purpose of the loan application for refinancing of the credit institution;

(iii) Credit file list for refinancing according to Appendix No. 03 promulgated together with this Circular (two copies);

(iv) Report on data according to Appendices No. 04 and No. 05 promulgated together with this Circular;

b) Documents for requesting refinancing extension include the following:

(i) Loan application for refinancing extension according to Appendix No. 02 promulgated together with this Circular;

(ii) Detailed report on the following contents: Meeting the refinancing extension conditions as prescribed in Article 17 of this Circular; the difficulty situation in payment capacity of the credit institution; measures already applied and planned to apply to overcome difficulties in payment capacity and refinancing loan repayment;

(iii) Credit file list for refinancing extension according to Appendix No. 03 promulgated together with this Circular (two copies);

(iv) Report on data according to Appendices No. 04 and No. 05 promulgated together with this Circular.

2. Within three working days from the date of receipt of complete documents of the credit institution as prescribed in Clause 1 of this Article, the Department of Monetary Policy shall send for comments from the Banking Supervision Agency, the Department of Credit for Economic Sectors, and the State Bank Branches in provinces and cities (in cases where the State Bank Branches in provinces and cities have the responsibility to supervise the credit institutions requesting refinancing or refinancing extension).

3. Within seven working days from the date of receipt of the document requesting comments from the Department of Monetary Policy as prescribed in Clause 2 of this Article, the Banking Supervision Agency, the Department of Credit for Economic Sectors, and the State Bank Branches in provinces and cities shall provide comments in writing to the Department of Monetary Policy on the following contents:

a) The Banking Supervision Agency: Evaluation of whether the credit institution meets or does not meet the conditions prescribed in Clauses 1 and 2 of Article 16 of this Circular (for the case of credit institutions requesting refinancing) or the conditions prescribed in Clauses 1 and 2 of Article 17 of this Circular (for the case of credit institutions requesting refinancing extension); opinions on the refinancing or refinancing extension request of the credit institution; other contents (if any);

b) Department of Credit to Economic Sectors: Provide data on outstanding loans granted by credit institutions to sectors and fields encouraged for development under the supervision and management assigned to the Department of Credit to Economic Sectors; based on reports and files of credit institutions, provide opinions on the conditions for refinancing and extension of refinancing according to Articles 16 and 17 of this Circular; opinions on requests for refinancing and extension of refinancing from credit institutions; other contents (if any);

c) State Bank Branches at provincial and municipal levels: Evaluate whether credit institutions meet the conditions stipulated in Clause 1 and 2 of Article 16 of this Circular (in cases where credit institutions request refinancing) or the conditions stipulated in Clause 1 and 2 of Article 17 of this Circular (in cases where credit institutions request extension of refinancing); opinions on requests for refinancing and extension of refinancing from credit institutions; other contents (if any).

4. Within ten working days from the date of receiving complete opinions of units as prescribed in Clause 3 of this Article and updated, supplemented, and clarified contents of credit institutions and units (if any), the Department of Monetary Policy shall compile and submit to the Governor of the State Bank for consideration and decision on refinancing and extension of refinancing for credit institutions.

5. Within twenty-five working days from the date of receiving complete files of credit institutions as prescribed in Clause 1 of this Article and updated, supplemented, and clarified documents of credit institutions (if any), the State Bank shall issue a Decision on refinancing and extension of refinancing for credit institutions; in case of disagreement, the State Bank shall send a document stating the reasons to the credit institution.

6. Based on the Decision of the Governor of the State Bank regarding the provision of refinancing funds, extension of refinancing funds to credit institutions, and relevant legal provisions, the Director of the State Bank Trading Department or the Director of the State Bank Branch in provinces and cities shall sign the refinancing fund loan contracts, disburse funds, extend, and recover refinanced loans for credit institutions.

Chapter III

RESPONSIBILITIES OF CREDIT INSTITUTIONS AND UNITS UNDER THE STATE BANK

Article 21. Responsibilities of credit institutions

1. Implement responsibilities as prescribed in this Circular and relevant laws.

2. Provide the State Bank with complete, timely, and accurate files and documents regarding refinancing and extension of refinancing in the form of re-lending according to credit files. Bear legal responsibility for the accuracy and legality of the provided files and documents.

3. Be responsible for meeting the conditions for refinancing and extension of refinancing stipulated in Clause 2 of Article 12, Clause 3 of Article 16, and Clause 3 of Article 17 of this Circular. Be responsible for the loans listed in the credit file for refinancing and extension of refinancing complying with legal provisions and meeting the standards set forth in this Circular.

4. During the period of requesting refinancing and extension of refinancing, credit institutions must update information and data in Appendix No. 03 issued together with this Circular (if there are changes); promptly report to the State Bank (Department of Monetary Policy) to stop the consideration of refinancing and extension of refinancing if the credit institution no longer needs such refinancing or extension.

5. Use the refinancing loan to support liquidity for its intended purpose; repay the refinancing loan in the form of re-lending according to the credit file as prescribed in this Circular and the refinancing contract.

6. During the period of refinancing and extension of refinancing in the form of re-lending according to the credit file, credit institutions have the following responsibilities:

a) Maintain and store separately the credit file for refinancing and extension of refinancing;

b) Not use the loan amount listed in the credit file for refinancing and extension of refinancing for other purposes;

c) Monitor and evaluate the criteria of the loan amount listed in the credit file for refinancing and extension of refinancing; within three working days from the date when the loan amount or principal balance of the loan decreases or the loan no longer meets the criteria stipulated in Clause 1 and 2 of Article 13 of this Circular (for refinancing as prescribed in Clause 1 of Article 4 of this Circular) or Clause 1 and 2 of Article 18 of this Circular (for refinancing as prescribed in Clause 2 of Article 4 of this Circular), the credit institution must replace and supplement the loan amount that meets the criteria to ensure that the total principal balance of the loans after replacement and supplementation is not lower than the total principal balance of the loans listed in the attached credit file in the Decision on Refinancing and Decision on Extension of Refinancing issued by the Governor of the State Bank, and simultaneously report to the State Bank (Bank Inspection and Supervision Agency, Department of Monetary Policy, Department of Credit to Economic Sectors, State Bank Trading Department, or State Bank Branches at provincial and municipal levels where the credit institution receives disbursement of refinancing).

7. Regularly, within the first two working days of the following week immediately after the reporting week, submit a written report directly or through postal service to the State Bank (Bank Inspection and Supervision Agency, State Bank Branches at provincial and municipal levels responsible for inspecting and supervising credit institutions requesting refinancing) on the use of the refinancing loan to support liquidity according to Appendix No. 08 issued together with this Circular until the refinancing loan is fully utilized.

Article 22. Responsibilities of units under the State Bank of Vietnam

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 the provision of refinancing capital and extension of refinancing capital in the form of relending according to the credit file as prescribed in this Circular;

b) Serve as the focal point to submit to the Governor of the State Bank of Vietnam regarding the handling of difficulties arising during the implementation of refinancing capital in the form of relending according to the credit file;

c) Aggregate data on refinancing capital in the form of relending according to the credit file at the State Bank of Vietnam Trading Center, State Bank of Vietnam branch in provinces and cities, and report to the Governor of the State Bank of Vietnam within five working days from the date of receiving complete reports from the State Bank of Vietnam Trading Center, State Bank of Vietnam branch in provinces and cities until the outstanding balance is zero and there is no change in the refinancing capital in the form of relending according to the credit file;

2. Banking Inspection and Supervision Authority

a) Provide comments on the provision of refinancing capital and extension of refinancing capital in the form of relending according to the credit file as prescribed in this Circular;

b) Serve as the focal point to submit to the Governor of the State Bank of Vietnam for consideration and decision on the implementation of measures prescribed in point c, Clause 4, Article 8 of this Circular;

c) In case of receiving notification from the competent authority or from the State Bank of Vietnam branch in provinces and cities as prescribed in point d, Clause 5, Article 8 of this Circular or through inspection and supervision work discovering that credit institutions violate the provisions of Clause 1 and 2, Article 11 of this Circular, the Banking Inspection and Supervision Authority shall serve as the focal point to submit to the Governor of the State Bank of Vietnam a violation notice sent to the credit institution, while sending it to the Department of Monetary Policy, Department of Credit for Economic Sectors, State Bank of Vietnam Trading Center, and State Bank of Vietnam branch in provinces and cities; the violation notice must minimally contain information about the violation of the credit institution and the measures taken by the State Bank of Vietnam as prescribed in this Circular;

d) Supervise, inspect, and handle violations within its authority against credit institutions in the implementation of the provisions of this Circular;

3. Department of Credit for Economic Sectors: Provide comments on the provision of refinancing capital and extension of refinancing capital in the form of relending according to the credit file as prescribed in this Circular;

4. State Bank of Vietnam Trading Center

a) Implement signing contracts for refinancing capital with basic contents as set out in Appendix No. 07 issued together with this Circular; disburse, extend, and recover refinancing capital according to the provisions of this Circular, the Decision of the Governor of the State Bank of Vietnam on refinancing capital and extension of refinancing capital in the form of relending according to the credit file for credit institutions, and relevant laws;

b) Guide credit institutions to sign contracts for refinancing capital, disburse, and recover refinancing capital according to the process handled on the system of specialized software of the State Bank of Vietnam;

c) Implement measures to handle credit institutions according to the provisions of point a and b, Clause 4, Article 8 of this Circular;

d) Within seven working days of the first month following the month with outstanding balance or changes in refinancing capital in the form of relending according to the credit file at the State Bank of Vietnam Trading Center, send a document to the Banking Inspection and Supervision Authority, Department of Monetary Policy, and Department of Credit for Economic Sectors regarding the data on refinancing capital as set out in Appendix No. 09 issued together with this Circular;

đ) Convert overdue interest on refinancing capital into overdue interest on special loans according to the provisions of Clause 3, Article 23 of this Circular;

5. State Bank of Vietnam branch in provinces and cities

a) Provide comments on the provision of refinancing capital and extension of refinancing capital in the form of relending according to the credit file as prescribed in this Circular (for State Bank of Vietnam branches in provinces and cities responsible for inspecting and supervising credit institutions requesting refinancing capital and extension of refinancing capital);

b) Implement signing contracts for refinancing capital with basic contents as set out in Appendix No. 07 issued together with this Circular; disburse, extend, and recover refinancing capital according to the provisions of this Circular, the Decision of the Governor of the State Bank of Vietnam on refinancing capital and extension of refinancing capital in the form of relending according to the credit file for credit institutions, and relevant laws;

c) Implement measures to handle credit institutions according to the provisions of point a and b, Clause 4, Article 8 of this Circular;

d) Supervise, inspect, and handle violations within its authority against credit institutions in the implementation of the provisions of this Circular (for State Bank of Vietnam branches in provinces and cities responsible for inspecting and supervising credit institutions borrowing refinancing capital);

đ) Notify the Banking Inspection and Supervision Authority in writing in cases where, through inspection and supervision work, it discovers that credit institutions have violated the provisions of Clause 1 and 2, Article 11 of this Circular (for State Bank of Vietnam branches in provinces and cities responsible for inspecting and supervising credit institutions borrowing refinancing capital);

e) Within seven working days of the first month following the month with outstanding balance or changes in refinancing capital in the form of relending according to the credit file at the State Bank of Vietnam branch in provinces and cities, send a document to the Banking Inspection and Supervision Authority, Department of Monetary Policy, and Department of Credit for Economic Sectors regarding the data on refinancing capital as set out in Appendix No. 09 issued together with this Circular;

6. Department of Finance and Accounting: Guide accounting entries related to the provision of refinancing capital in the form of relending according to the credit file;

7. Information Technology Department:

a) Serve as the focal point, coordinate with the State Bank of Vietnam Trading Center and related units to develop software programs, install software programs, and ensure computer network infrastructure for the stable, smooth, secure, and confidential operation of refinancing capital in the form of relending according to the credit file for credit institutions;

b) Guide credit institutions to connect to the State Bank of Vietnam's network to implement transactions of refinancing capital in the form of relending according to the credit file;

c) Guide the issuance and recovery of access codes and electronic signature codes for credit institutions;

Chapter IV

IMPLEMENTING PROVISIONS

Article 23. Effectiveness of Implementation

1. This Circular takes effect from January 18, 2020.

2. Repeal Circular No. 15/2012/TT-NHNN dated May 4, 2012, issued by the Governor of the State Bank of Vietnam on the State Bank of Vietnam's refinancing in the form of relending according to credit files for credit institutions.

3. From the date this Circular takes effect, the outstanding interest on refinancing in the form of relending according to credit files for credit institutions that have been placed under special supervision before the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions No. 47/2010/QH12 comes into force shall be converted into outstanding interest on special loans.

4. The remaining refinancing amount in the form of relending according to credit files up to the date this Circular takes effect shall continue to be implemented in accordance with the refinancing decision and refinancing contract already signed. Any amendment or supplementation to the refinancing decision and refinancing contract in the form of relending according to credit files already signed shall be carried out in accordance with the provisions of this Circular.

Article 24. Implementation Organization

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and cities, the Chairmen of the Boards of Directors, the Chairmen of the Boards of Members, and the General Managers (Directors) of credit institutions are responsible for organizing the implementation of this Circular./.