Decision No. 992/2001/QD-NHNN on the level of unsecured loans for joint-stock commercial banks, joint-stock finance companies, and joint venture banks.

Pursuant to …;

Regarding the provision of the level of unsecured loans granted by joint-stock commercial banks, joint-stock finance companies, and joint venture banks

Joint-stock commercial banks, joint-stock finance companies, and joint venture banks

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations dated December 12, 1997;

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

Pursuant to Clause 2, Article 21 of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit institutions;

Pursuant to the proposal of the Director of the Monetary Policy Department,

DECISION:

Article 1.Joint-stock commercial banks, joint-stock finance companies, and joint venture banks meeting the following two conditions shall be allowed to grant unsecured loans to borrowers:

1. The ratio of non-performing debt (including overdue debts with recoverable potential, difficult-to-collect debts, pending debts for processing, and debts written off shown on the monthly balance sheet) to total outstanding loans to borrowers is less than 5%.

2. The minimum capital stock (as reflected on the monthly balance sheet) complies with the provisions set forth in Decree No. 82/1998/NĐ-CP dated October 3, 1998 of the Government regarding the list of statutory capital levels for credit institutions.

Article 2.

1. The level of unsecured loans granted to borrowers by joint-stock commercial banks, joint-stock finance companies, and joint venture banks meeting the conditions stipulated in Article 1 of this Decision shall not exceed the self-owned capital level specified in Clause 1, Article 2 of Decision No. 296/1999/QĐ-NHNN5 dated August 25, 1999 of the Governor of the State Bank of Vietnam.

2. The level of unsecured loans granted by joint-stock commercial banks, joint-stock finance companies, and joint venture banks as specified in Clause 1 of this Article does not include the following types of outstanding loans:

a. Loans granted at the direction of the Government;

b. Unsecured loans granted according to Decision No. 67/1999/QĐ-TTg dated March 3, 1999 of the Prime Minister on certain credit policies for banking services supporting agricultural and rural development; loans up to VND 20 million without requiring collateral for farmers, farm owners engaged in agricultural, forestry, and aquaculture production as defined in Point 4, Section I of Circular No. 10/2000/TT-NHNN1 dated August 31, 2000 of the Governor of the State Bank of Vietnam guiding the implementation of measures concerning loan guarantees for credit institutions under Resolution No. 11/2000/NQ-CP dated July 31, 2000 of the Government on certain measures to manage economic and social development plans in the last six months of 2000;c. Loans under VND 50 million granted to organizations, households, and individuals for aquaculture seed production without requiring collateral as stipulated in Point 2, Article 4 of Decision No. 103/2000/QĐ-TTg dated August 25, 2000 of the Prime Minister on certain policies to encourage the development of aquaculture seeds;

d. Small loans granted to individuals and poor households guaranteed by political and social organizations as stipulated in Section 3, Chapter IV of Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank of Vietnam;

đ. Loans granted to state-owned enterprises meeting the conditions for unsecured loans as stipulated in Point 2, Section 1, Chapter IV of Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank of Vietnam to fund projects under national key economic programs and special economic programs as decided by the Government and the Prime Minister. The granting of such loans to these enterprises by credit institutions shall be based on documents: government and prime ministerial documents on the implementation of key economic programs and special economic programs; economic contracts or documents from competent authorities proving the enterprise's participation in key projects, works, and other tasks under these programs; acceptance certificates, final settlement statements, and related documents.

e. Loans granted at the commission of the Government and organizations and individuals both within and outside the country.

3. The level of unsecured loans granted to borrowers by joint-stock commercial banks, joint-stock finance companies, and joint venture banks as specified in Clause 1 of this Article shall only apply to credit contracts established from September 3, 2000.

Joint-stock commercial banks, joint-stock finance companies, and joint venture banks granting unsecured loans to borrowers shall comply with the provisions of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit institutions, Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank of Vietnam, and other relevant legal documents.

Article 3.1. This Decision takes effect from the date of signature and replaces Decision No. 266/2000/QĐ-NHNN1 dated August 18, 2000 of the Governor of the State Bank of Vietnam.

Article 4.Implementation Provisions

2. The Director of the State Bank of Vietnam’s Inspectorate shall be responsible for inspecting and supervising the implementation of this Decision.

3. Heads of units under the State Bank of Vietnam, Governors of provincial branches of the State Bank of Vietnam directly under the central government; Boards of Directors, General Managers (Directors) of joint-stock commercial banks, joint-stock finance companies, and joint venture banks shall be responsible for implementing this Decision.

4. Any amendments or supplements to this Decision shall be decided by the Governor of the State Bank of Vietnam./.

4. The amendment and supplementation of this Decision shall be decided by the Governor of the State Bank./.