Bad debt 5,907 billion VND
The Investigation Security Agency, Ministry of Public Security has just issued the conclusion of the investigation into the case of "Violating regulations on management and use of State assets causing loss and waste; Giving bribes; Receiving bribes; Taking advantage of positions and powers to influence others for personal gain" occurring at Xuyen Viet Oil Trading, Transport and Tourism Limited Liability Company and a number of agencies.
According to data from the business registration portal, Xuyen Viet Oil Transport and Tourism Trading Company Limited is headquartered in Ho Chi Minh City and has a charter capital of VND3,000 billion.
After many changes in business registration, the latest information shows that Xuyen Viet Oil Company has two female shareholders. Of which, Ms. Mai Thi Hong Hanh (born in 1979) - director and legal representative - contributed 2,940 billion VND, equivalent to 98% of the capital. Ms. Mai Thi Ngoc Trinh (born in 1992) - deputy director - holds the remaining 2%, equivalent to 60 billion VND.
In the conclusion just issued by the Ministry of Public Security, the investigation agency said that in Official Dispatch No. 1577/TTTD-TTQL dated September 20, 2023 of the National Credit Information Center of Vietnam, it was determined that Ms. Mai Thi Hong Hanh's companies have bad debt of VND 6,178.4 billion.
Of which, Xuyen Viet Oil is in debt of VND 5,907 billion at 4 banks, including: debt to BIDV of VND 1,365.2 billion; debt to SHB of VND 952.6 billion and 60.7 million USD; debt to Agribank of VND 77.9 billion; debt to VietinBank of VND 1,603.8 billion.
In addition, Viet Oil Company in Ben Tre, directed by Ms. Mai Thi Hong Hanh, still owes 271 billion VND in principal at VietinBank Ben Tre branch. In addition, Xuyen Viet Oil also owes 219 billion VND to the BOG fund.
Mortgage 100 billion deposit to borrow 2,000 billion VND
According to data from Lao Dong Newspaper reporters, in February 2020, Xuyen Viet Oil signed a loan contract at Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) - Nam Ky Khoi Nghia Branch, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City. The loan is worth 97 billion VND with collateral being 2 Term Deposit Contracts, worth 55 billion VND and 42 billion VND at Saigon - Hanoi Commercial Joint Stock Bank (SHB).
In May 2021, Xuyen Viet Oil continued to sign a loan contract of 450 billion VND at BIDV - Nam Ky Khoi Nghia Branch. The collateral is more than 32.7 million liters of DO 0.05%S oil (Diesel oil) with an average unit price of 13,751 VND/liter, equivalent to a value of about 450 billion VND.
Notably, on February 23, 2022, Xuyen Viet Oil signed contract No. 03/2022/7191166/HDBĐ for a loan of VND 2,000 billion at BIDV - Nam Ky Khoi Nghia Branch. The collateral is the deposit balance and interest of the VND 100 billion deposit contract at Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) - Central Branch.
By April 2022, Xuyen Viet Oil continued to register a mortgage contract of 50 billion VND at Sacombank for a loan of 2,000 billion VND at BIDV.
In September 2022, the company mortgaged "all benefits obtained from exploiting the value of construction works on land for land plots in Hamlet 4, Toc Tien Commune, Tan Thanh District (now Tan Thanh Town), Ba Ria Vung Tau Province and the gas station on the land" (total value of collateral is more than 507 million VND) for a loan of 2,000 billion VND at BIDV - Nam Ky Khoi Nghia Branch.
At Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), August 9, 2022, Xuyen Viet Oil signed contract No. 01/2022/HDBĐ/NHCT908 - XUYEN VIET OIL, mortgaging assets including a blue Roll-Royce car and 5 white Hyundai cars transporting gasoline and oil (tanker trucks transporting gasoline and oil) to borrow capital at VietinBank branch 4, Ho Chi Minh City.
Regarding SHB, on September 27, 2022, Xuyen Viet Oil mortgaged 56.4 million common shares of Viet Oil Port Joint Stock Company (valued at VND 564 billion, equivalent to 94% ownership ratio) and 22 million shares of Lam Dong Trading Services Joint Stock Company (valued at VND 220 billion, equivalent to 55% ownership ratio) owned by Xuyen Viet Oil to borrow capital at SHB.
It can be seen that the assets securing the loans have values equivalent to or much lower than the value of Xuyen Viet Oil's loans at banks.
What is the maximum loan amount on collateral?
According to the provisions of Article 15 of Circular 39/2016/TT-NHNN on loan security as follows:
1. The application of loan security measures or non-application of loan security measures shall be agreed upon by the credit institution and the customer. The agreement on loan security measures between the credit institution and the customer shall be in accordance with the provisions of law on security measures and relevant laws.
2. Credit institutions decide and are responsible for lending without applying loan security measures.
3. Customers and guarantors must cooperate with credit institutions to handle loan collateral when there is a basis for handling according to the loan agreement, loan guarantee contract and regulations of law.
Previously, according to Article 12 of the Regulations on mortgage, pledge of assets and loan guarantees issued by the Bank with Decision 217/QD-NH1 in 1996 (expired), there was a regulation on the maximum loan amount on secured assets equal to 70% of the value of the secured assets determined and recorded in the loan contract.
However, this regulation has now expired and the content of the maximum loan amount on collateral is currently implemented according to the agreement between the customer and the credit institution. The agreement on the maximum loan amount on collateral must comply with the provisions of the law on security measures and related laws.
In fact, currently, banks and some credit institutions still maintain the maximum loan amount on secured assets at 70% of the value of the secured assets.