Refinancing loans on the basis of special bonds for credit Institutions

Accordingly, Article 4, of this Circular prescribes that special bonds as the basis for refinancing loans must satisfy the conditions as follows:

- Bonds that are under the legal ownership of credit institutions, are deposited at the State Bank’s transaction.

- Not special bonds in the payment process.

- Not in the special bond statement that the credit institution suggests the State Bank of Vietnam extend in accordance with law provisions on purchasing and processing bad debts of the Asset Management Company for Vietnam Credit Institutions.

- At the date of the special bond statement as the basis for the refinancing loan, an extension of refinancing, and an update of the special bond statement, the remaining time of the special bond is longer than the proposal time of refinancing loan, and the minimum refinancing loan is 06 months.

In accordance with Article 6, the State Bank of Vietnam shall consider, and decide the refinance loan for credit institutions that can satisfy the conditions as follows:

- The credit institution is not in the special control time or gets the fine for violations prescribed in Article 15 of this Circular.

- The credit institution sets up risk provision levels for special bonds within 12 preceding months before issuing the Proposal for refinancing loan.

- The credit institution complies with the security ratio within 21 preceding months before issuing the Proposal for refinancing loan.

- The special loan as the basis for refinancing loan satisfies all conditions for a special loan as the basis for refinancing loan and extension of refinancing loan.