CIRCULAR

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF CIRCULAR NO. 17/2011/TT-NHNN OF AUGUST 18, 2011, STIPULATING THE GRANT OF LOANS BY THE STATE BANK OF VIETNAM TO CREDIT INSTITUTIONS WITH PLEDGE OF VALUABLE PAPERS AS SECURITY

Pursuant to June 16, 2010 Law No. 46/ 2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/ 2010/QH12 on Credit Institutions:

Pursuant to the Government's Decree No. 96/2008/ND-CP of August 26. 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

The State Bank of Vietnam (below referred to as the State Bank) amends and supplements a number of articles of Circular No. 17/2011/ TT-NHNN of August 18, 2011, stipulating the grant of loans by the State Bank of Vietnam to credit institutions with pledge, of valuable papers as security (below referred to as Circular No. 17), as follows:

Article 1. To amend and supplement a number of articles of Circular No. 17 as follows:

1. To amend and supplement Clause 3 of Article 11 as follows:

...

...

...

When wishing to reschedule the term of a pledge loan borrowed from the State Bank, an institution shall send one set of dosster application directly or by post to the State Bank within at least 3 working day\s before the maturity date of pledge loans. The dosster comprises:

- A written request stating the reason for rescheduling:

- Documents specified in Clauses 3 and 4. Article 15 of Circular No. 17.

Within 2 working days after receiving a complete dossier, the State Bank shall notify in writing the credit institution of its approval or disapproval of the rescheduling (stating the reason) and send its notice to related units."

2. To supplement Clause 5 of Article 20 as follows:

"5. To report on a daily basis on operation of credit institutions, capital sources and use of loans to State Bank branches of provinces or centrally run cities in which credit institutions are headquartered (below referred to as provincial-level State Bank branches 1 within the term of refinancing loans the State Bank."

3. To amend and supplement Clause 1 of Article 21 as follows:

1. The Monetary Policy Department shall:

a. Assume the prime responsibility for, and coordinate with related units in. determining the quarterly and annual volumes of money to be supplied for refinancing purposes, including refinancing with pledge of valuable papers, and submit them to the State Bank Governor for approval and notification to related units:

...

...

...

c. Receive and examine credit institutions' dossiers of application for pledge loans;

d. Submit to the State Bank Governor for approval credit institutions' applications for loans with pledge of valuable papers and authorize provincial-level State Bank branches to grant pledge loans (if any) and notify applying credit institutions of the approval or disapproval of the grant of pledge loans;

e. Transfer dossiers already approved by the State Bank Governor to the State Bank Transaction Bureau for granting pledge loans;

f. Assume the prime responsibility for, and coordinate with related units in, settling difficulties and problems arising in the grant of pledge loans:

g. Submit to the State Bank Governor for consideration and decision requests of credit institutions for alteration of valuable papers currently pledged at the State Bank;

h. Review on a monthly, quarterly or annual basis on the grant of pledge loans at the State Bank Transaction Bureau and provincial-level Slate Bank branches for reporting to the Slate Bank Governor and the Credit Department."

4. To amend Clause 2 of Article 21 as follows:

"2. The Credit Department shall:

Submit to the State Bank Governor for approval the list and priority order of valuable papers allowed to be used for pledge loans and the ratio of (he value of valuable papers to pledge loan amounts for each period."

...

...

...

"d/ Summarize on a monthly, quarterly or annual basis data on the grant of pledge loans at the Bureau and detect in time difficulties and problems in the course of implementation and send them to the Monetary Policy Department for summarization and reporting lo the State Bank Governor."

6. To supplement Clause 6 of Article 21 as follows:

"c/ Coordinate with the Monetary Policy Department in giving opinion on credit institutions' application for pledge of valuable papers:

d/ Provide the Monetary Policy Department with information on operation of applying credit institutions, including their solvency:

e/ Assume the prime responsibility for, and coordinate with units in. devising measures to handle credit institutions for failing to repay the Stale Bank's loans".

7. To amend and supplement Clause 7 of Article 21 as follows:

"c/ Summarize on a monthly, quarterly or annual basis information and data on the grant of pledge loans al their branches, and detect in time difficulties and problems in the course of implementation and send them to the Monetary Policy Department for summarization and reporting to the State Bank Governor;

d/ Coordinate with units of the Stale Bank in inspecting, examining and supervising the use of loans with pledge of valuable papers by credit institutions during their terms; handle according to its competence and propose the State Bank Governor lo handle violations of current regulations;

e/ Make a monthly, quarterly or annual report to the State Bank Governor and the Monetary Policy Department on operation of credit institutions with refinancing debts headquartered in their localities."

...

...

...

Article 3. Effect

1. This Circular takes effect on December 12, 2011.

2. The chief the Office, the director of the Monetary Policy Department and heads of the units of the State Bank, directors of provincial-level State Bank branches; chairpersons of the Boards of Directors or Members' Councils-directors general (directors) of credit institutions, the Central People's Credit Fund, and foreign bank branches shall implement this Circular.-

FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR




Nguyen Dong Tien