The State Bank said it has just issued Circular 37 regulating special loans.
Accordingly, the notable point of this Circular is the mention of loans to credit institutions (except cooperative banks) that are subject to mass withdrawals.
Accordingly, the special borrower is only allowed to use the special loan from the State Bank to pay for deposits in Vietnamese Dong of individual depositors. The use of the special loan to pay for deposits of other entities is decided by the Governor of the State Bank in each specific credit institution case.
In addition, the Circular also stipulates special lending to specially controlled credit institutions such as commercial banks, cooperative banks, finance companies, and microfinance institutions to implement approved recovery plans.
Special lending to specially controlled commercial banks to implement the compulsory transfer plan under the Law on Credit Institutions 2024 has been approved.
Special lending to specially controlled commercial banks to support recovery under the compulsory transfer scheme under the Law on Credit Institutions 2010 has been approved.
Vietnam Cooperative Bank provides special loans in the following cases: Special loans to people's credit funds that are subject to mass withdrawals to pay deposits to depositors; special loans to people's credit funds under special control to implement approved recovery plans.
The State Bank shall consider and decide on the term of special loans, guaranteed to be under 12 months; consider extending the term of special loans based on the payment capacity of the special borrower or the plan to handle the borrowed special loan in the restructuring plan submitted to the State Bank (if any), each extension term shall be under 12 months.
The interest rate for special loans and special loan extensions is equal to the refinancing interest rate in the form of loans secured by valuable papers as of the disbursement date and the special loan extension date. The overdue interest rate is equal to 130% of the special loan interest rate in the most recent term of the special loan. No interest is applied to late interest debt.
