Circular No. 33/2016/TT-NHNN stipulates the revenue ratios of the Asset Management Company of Credit Institutions of Vietnam for non-performing loans purchased with special bonds.

CIRCULAR

Regulations on the ratios of revenue from the Vietnam Asset Management Company for non-performing loans purchased with special bonds

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. 53/2013/NĐ-CP dated May 18, 2013 of the Government on the establishment, organization, and operation of the Vietnam Asset Management Company, amended and supplemented by Decree No. 34/2015/NĐ-CP dated March 31, 2015 of the Government and Decree No. 18/2016/NĐ-CP dated March 18, 2016 of the Government (hereinafter referred to as Decree No. 53/2013/NĐ-CP);

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam issues this Circular regulating the ratios of revenue from the Vietnam Asset Management Company for non-performing loans purchased with special bonds.

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the ratios of revenue from the Vietnam Asset Management Company (hereinafter referred to as the Asset Management Company), including:

a) The ratio based on the amount recovered from non-performing loans purchased by the Asset Management Company with special bonds as specified in point i, clause 1, Article 13 of Decree No. 53/2013/NĐ-CP;

b) The ratio based on the remaining principal balance at the end of the period of non-performing loans purchased by the Asset Management Company with special bonds being recorded on the balance sheet of the Asset Management Company as specified in point l, clause 1, Article 13 of Decree No. 53/2013/NĐ-CP.

2. The subjects to which this Circular applies include:

a) The Asset Management Company;

b) Credit institutions selling non-performing loans to the Asset Management Company and receiving special bonds (hereinafter referred to as credit institutions selling loans).

c) Other relevant organizations and individuals.

Article 2. Authority, principles, and basis for determining the ratios of revenue

1. The Governor of the State Bank of Vietnam decides the ratios of revenue prescribed in clause 1, Article 1 of this Circular after reaching consensus with the Minister of Finance.

2. The determination of the ratios of revenue shall be carried out according to the following principles:

a) Ensuring that the Asset Management Company has sufficient revenue to fully cover operating costs as prescribed by law and minimize costs for credit institutions selling loans;

b) Promoting the resolution of non-performing loans.

3. The basis for the State Bank of Vietnam to determine the ratios of revenue includes:

a) The financial plan for the fiscal year in which the ratios of revenue (hereinafter referred to as the fiscal year) of the Asset Management Company are determined, including:

(i) The plan regarding the amount recovered from non-performing loans purchased by the Asset Management Company with special bonds;

(ii) The plan regarding the remaining principal balance at the end of the period of non-performing loans purchased by the Asset Management Company with special bonds being recorded on the balance sheet of the Asset Management Company;

(iii) The planned salary fund of the Asset Management Company.

b) The business classification results of the previous fiscal year for the Asset Management Company.

Article 3. Procedures for determining the ratios of revenue

1. By no later than March 1 of the fiscal year, the Asset Management Company reports to the State Bank of Vietnam (through the Department of Finance and Accounting) the anticipated ratios of revenue based on the financial plan for the fiscal year.

2. Within five days from the date of receipt of the report from the Asset Management Company, the Department of Finance and Accounting shall issue a document seeking opinions from the Banking Supervision Agency and the Department of Organization and Cadres.

3. Within five days from the date of receipt of the request from the Department of Finance and Accounting, relevant units shall issue a document responding to the Department of Finance and Accounting, with the Department of Organization and Cadres providing comments on point a (iii) clause 3, Article 2 of this Circular and the Banking Supervision Agency providing comments on point b clause 3, Article 2 of this Circular.

4. Within five days from the date of receipt of comments from relevant units, the Department of Finance and Accounting shall submit to the Governor of the State Bank of Vietnam a document seeking unified opinions from the Ministry of Finance, with the time limit for soliciting opinions not exceeding ten days.

5. Within five days from the date of receipt of comments from the Ministry of Finance, the Department of Finance and Accounting shall submit to the Governor of the State Bank of Vietnam a decision on the ratios of revenue for the fiscal year.

6. By no later than March 31 of the fiscal year, the Governor of the State Bank of Vietnam shall decide and notify the Asset Management Company and credit institutions selling loans about the ratios of revenue for the fiscal year.

Article 4. Effective date

This Circular takes effect from February 15, 2017, and replaces Circular No. 20/2014/TT-NHNN dated August 12, 2014 of the Governor of the State Bank of Vietnam on revenue and advance payments of the Vietnam Asset Management Company for non-performing loans purchased with special bonds.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

The Director of the Office, the Director of the Banking Supervision Agency, the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally administered cities, the Chairmen of the Board of Directors, the Chairmen of the Board of Members, and General Directors (Directors) of credit institutions in Vietnam, the Chairmen of the Board of Members, and General Directors of the Asset Management Company are responsible for organizing the implementation of this Circular./.