Circular No. 83/2013/TT-BTC guides the implementation of Decision No. 64/QD-TTg dated January 7, 2013, of the Prime Minister regarding the ratio of fees that credit institutions undergoing shareholding transformation may enjoy when recovering non-performing debt.

CIRCULAR

for use implementing Decision No. 64/QD-TTg dated January 7, 2013 of the Prime Minister

on the ratio of fees for credit institutions undergoing shareholding reform to be enjoyed when recovering off-balance sheet debts retained hưởng khi

thu hồi các khoản nợ ngoại bảng được giữ lại

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 Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 89/2013/NĐ-CP dated August 6, 2013 of the Government detailing implementation of certain provisions of the Price Law on appraisal;

Pursuant to Decision No. 64/QD-TTg dated January 7, 2013 of the Prime Minister on the ratio of fees for credit institutions undergoing shareholding reform to be enjoyed when recovering off-balance sheet debts retained;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance promulgates this Circular guiding the implementation of Decision No. 64/QD-TTg dated January 7, 2013 of the Prime Minister on the ratio of fees for credit institutions undergoing shareholding reform to be enjoyed when recovering off-balance sheet debts retained,

Article 1. Scope of application

The objects subject to this Circular include Vietnam Joint Stock Commercial Bank for Foreign Trade, Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Joint Stock Commercial Bank for Investment and Development, and Vietnam Joint Stock Commercial Bank for Southern Housing Development (referred to collectively in this Circular as state-owned commercial banks undergoing shareholding reform) and related organizations.

Article 2. Management of off-balance sheet debts retained

1. Off-balance sheet debts retained are off-balance sheet debts that have been excluded from the enterprise value when state-owned commercial banks undergo shareholding reform and are permitted by the Prime Minister for state-owned commercial banks undergoing shareholding reform to continue monitoring, managing, and recovering for the State budget.

2. State-owned commercial banks undergoing shareholding reform are responsible for determining and reporting to the State Bank of Vietnam the balance of off-balance sheet debts excluded from the enterprise value during the shareholding reform process; implementing accounting, separate tracking, strict management, and measures to thoroughly recover for the State budget off-balance sheet debts that have been excluded from the enterprise value during the shareholding reform process.

3. The State Bank of Vietnam shall re-evaluate and notify the Ministry of Finance of the balance of off-balance sheet debts excluded from the enterprise value of each state-owned commercial bank at the time of determining the enterprise value; conducting inspections and urging state-owned commercial banks undergoing shareholding reform to continue managing, tracking, and recovering for the State budget, ensuring that there is no loss of State assets.

Article 3. Management of funds recovered from off-balance sheet debts retained

1. The amount recovered from off-balance sheet debts retained as stipulated in Clause 2, Article 2 of this Circular is the actual amount that state-owned commercial banks undergoing shareholding reform recover from off-balance sheet debt recovery. State-owned commercial banks undergoing shareholding reform may allocate 20% of the amount recovered from off-balance sheet debts retained to record as income.

2. Direct costs arising from off-balance sheet debts retained include all costs associated with the debt recovery process (costs of selling assets, costs of managing collateral assets, auction costs, valuation costs...). State-owned commercial banks undergoing shareholding reform may record these costs according to the provisions of the law and financial regulations applicable to credit institutions. All such costs must be supported by valid invoices and documents in accordance with the law.

3. Recording method

a) In detail, the amount recovered from off-balance sheet debts retained occurring in a quarter, state-owned commercial banks undergoing shareholding reform shall record in the account for liabilities to be settled.

b) At the end of the quarter, state-owned commercial banks undergoing shareholding reform shall record as follows:

- For the 20% of the amount recovered from off-balance sheet debts retained, state-owned commercial banks undergoing shareholding reform shall record as other income.

- For the 80% of the amount recovered from off-balance sheet debts retained, state-owned commercial banks undergoing shareholding reform shall remit to the State budget.

Article 4. The agency responsible for collecting and the deadline for submitting state budget revenues from recovered non-performing debt amounts to be paid into the state budget

1. Within fifteen (15) days from the end of each quarter, the state-owned commercial banks undergoing shareholding reform shall remit the entire amount of recovered non-performing debt that must be paid into the state budget, which was generated during that quarter, to the state budget at the State Treasury in accordance with the Law on State Budgets and Circular No. 128/2008/TT-BTC dated December 24, 2008, issued by the Ministry of Finance, guiding the collection and management of state budget revenues through the State Treasury.

2. The entire amount of recovered non-performing debt that must be paid into the state budget as stipulated in Clause 1 of Article 4 of this Circular shall be submitted to the state budget according to:

a) The chapter corresponding to the state-owned commercial bank (Chapter 139: Vietnam Commercial Joint Stock Bank; Chapter 140: Vietnam Industrial and Commercial Bank; Chapter 142: Vietnam Development Bank; Chapter 144: Southern Vietnam Joint Stock Commercial Bank).

b) Type 340, Item 341.

c) Sub-item 3650, Sub-sub-item 3653 "Recovery of state budget capital usage fees".

Article 5. Reporting System

1. Every six (6) months once annually, from January 1 to June 30 and from July 1 to December 31 each year, state-owned commercial banks undergoing shareholding reform that have retained non-performing debt shall be responsible for preparing and reporting to the Ministry of Finance and the State Bank of Vietnam on the amount of non-performing debt recorded off-balance sheet that has been retained, the amount of recovered non-performing debt that has been retained; the amount retained by the state-owned commercial bank undergoing shareholding reform, the amount required to be paid into the state budget, and the amount already paid into the state budget. The periodic report up to the end of each year shall include a cumulative total of the recovered non-performing debt retained throughout the year (details according to the attached annex model).

2. Reporting deadlines:

- The mid-year report must be submitted no later than twenty (20) days from the end of the reporting period.

- The annual report must be submitted no later than ninety (90) days from the end of the fiscal year.

Article 6. Implementation Organization

1. This Circular takes effect from August 15, 2013.

2. In case of difficulties or obstacles during implementation, please reflect them to the Ministry of Finance for consideration and resolution./.