b) Non-bank credit institutions: general finance companies, specialized finance companies;

c) People's credit funds;

d) Microfinance institutions;

dd) Foreign branch banks.

...

...

...

Chapter II

SPECIFIC PROVISIONS

Article 3. Requirements for considering approval for credit overextensions

1. Borrowing customers, projects or plans shall be offered credit overextensions provided they meet the following requirements:

a) Borrowing customers strictly meet lawful credit extension requirements, have not incurred bad debts for the last 03 years before submission of their applications for credit overextensions and have a debt-to-equity ratio written on their annual financial statements prepared at the time preceding the time of application for credit overextensions not exceeding three times the prescribed limit;

b) Borrowing customers wish to borrow fund to implement business projects or plans with the aim of performing socio-economic development tasks in one of the following circumstances:

They implement business projects or plans of socio-economic significance and urgent ones in order to perform socio-economic development duties and meet the basic human needs in electricity, coal, oil and gas, petroleum, traffic, public transportation and other sectors under the direction of the Government or the Prime Minister from time to time;

They implement investment programs and projects for which investment guidelines are decided by the National Assembly or the Prime Minister;

They invest in sectors which are prioritized and encouraged under Resolutions of the National Assembly and the Government on socio-economic development from time to time.

...

...

...

2. Credit institutions must meet the following requirements:

a) Syndicated credit:

They have already proposed, and followed legally binding procedures for, extension of syndicated credit that funds projects and plans in need of credit overextensions but such syndicated credit has not yet met borrowing customer's requirements; or

They have already sent syndication invitation letters to at least 05 other credit institutions; post them on their web portals and web portal of the State Bank of Vietnam or Banking Review or Banking Times within the minimum period of 45 business days but none of credit institutions agree to participate in that syndication.

b) At the time of application for credit overextension, credit institutions satisfy prudential ratio and limit requirements prescribed by the Law on Credit Institutions and guiding documents of the State Bank of Vietnam;

c) Credit institutions fulfill requirements concerning responsibilities and obligations aforestated in application documents for credit overextensions and documents stating approval of credit overextension;

d) Credit institutions meet the limits on credit extension provided in clause 8 Article 136 of the Law on Credit Institutions 2024 even when the amount of credit overextension in demand is included.

Article 4. Documentation requirements for credit overextension

1. Required documents submitted by a credit institution to the State Bank of Vietnam:

...

...

...

a) Credit institution’s written request form submitted to the State Bank of Vietnam for report to the Prime Minister to obtain his permission for credit overextension to a single customer, a customer and their related person(s), using the form given in the Appendix to this Decision;

b) Documents and materials evidencing that the credit institution has already met requirements stated in point a clause 2 Article 3 hereof;

c) Written record on credit institution's assessment of borrowing customers, their projects and plans that need credit overextensions;

d) Written document on approval of credit extension granted by a competent authority which has authority over the requesting credit institution;

dd) Customer’s application form for credit extension granted by the credit institution;

e) Documents related to customers applying for credit extension, including: business registration certificate or establishment certificate or establishment decision; audited financial statement for last 03 years before the submission of their applications for credit overextensions; other relevant materials (if any);

g) Legal documents related to projects or plans in need of credit extension, including:

Investment registration certificate or written document stating approval or acceptance of projects or plans that is issued by competent authorities.

Other relevant documents.

...

...

...

2. Documents of the State Bank of Vietnam submitted to the Prime Minister shall include the Report Form of the State Bank of Vietnam, enclosing the following materials:

a) Credit institution’s written request form submitted to the State Bank of Vietnam for report to the Prime Minister to obtain his permission for credit overextension to a single customer, a customer and their related person(s);

b) Written documents recording contributed opinions from ministries, central and local authorities involved;

c) Written explanations of credit institutions and customers (if any);

d) Other relevant documents (if any).

Article 5. Determination of credit overextension

Credit overextension to a single customer, a customer and their related person(s) shall be calculated according to the following formula:

MCTDTĐ = TMDN + ĐN

Where:

...

...

...

TMDN denotes total outstanding debt determined as at the reporting time;

ĐN denotes the requested amount of new credit extension that is approved.

In this formula, TMDN and ĐN shall be determined as follows:

1. Total outstanding debt determined as at the reporting time (TMDN) which is included in the credit overextension shall be total outstanding credit debt owed by a single customer, a customer and their related person(s) at a credit institution at the reporting time, including:

a) Total outstanding debt of credit extension granted within the credit limit under credit institution's jurisdiction;

b) Total outstanding debt of credit overextension granted under the Prime Minister's approval of credit overextension which remains valid as of the reporting time.

2. Request for new credit extension that is approved (ĐN):

The requested amount included in the credit limit shall be total amount of new credit lines which are approved by the Prime Minister for credit overextension.

Article 6. Procedures for application for credit overextension

...

...

...

2. Within duration of 15 days from the receipt of all required documents from credit institutions:

If these documents do not meet requirements specified in Article 3 hereof, the State Bank of Vietnam shall send the requesting credit institution a written notification clarifying which requirements are not satisfied;

If these documents are valid, the State Bank of Vietnam shall request ministries, central and local authorities in writing for their advice on economic, engineering and legal aspects of projects and plans, and customers applying for credit overextension.

3. Within duration of 15 days from the receipt of the State Bank’s written request for advice, ministries, central and local authorities shall give their written opinions on issues under their respective jurisdiction to the State Bank of Vietnam. The State Bank of Vietnam shall request credit institutions and customers to explain issues (if any) on which ministries, central administrations and local authorities have given their opinions.

4. Within duration of 40 days from the receipt of opinions from ministries, central and local authorities or explanations from credit institutions and customers, the State Bank of Vietnam shall check rationality and validity of application documents for credit overextension that credit institutions have provided:

If these documents do not meet requirements specified in Article 3 hereof, the State Bank of Vietnam shall send the requesting credit institution a written notification clarifying which requirements are not satisfied;

If these documents are reasonable and valid, the State Bank of Vietnam shall submit them to the Prime Minister for his review and grant of decision on credit institution's application for credit overextension.

5. According to the credit institutions’ request for credit overextension and opinions of the State Bank of Vietnam, ministries and central and local authorities, the Prime Minister shall issue decision on credit institution's application for credit overextension.

Chapter III

...

...

...

Article 7. Implementation

1. The State Bank of Vietnam

a) Take responsibility for assessing documents provided by credit institutions and submitting them to the Prime Minister to seek his decision on application for credit overextension, the amount of credit overextension and ensuring conformance to requirements and procedures prescribed herein;

b) Inspect and oversee compliance of credit institutions with regulations on credit overextension;

c) Submit an annual consolidated report to the Prime Minister on review of credit overextensions approved by the Prime Minister which remains valid.

2. Ministries, central and local authorities

a) Cooperate with the State Bank of Vietnam in giving opinions on applications for credit overextension of credit institutions to a single customer, a customer and their related person(s) as provided in clause 3 Article 6 hereof;

b) Assume responsibility for their opinions on projects, plans and customers applying for credit overextension; other responsibilities under their state management authority over projects, plans and customers receiving approval of credit overextensions in accordance with laws.

3. Credit institutions

...

...

...

b) Be held legally liable for accuracy and sufficiency of information and documents sent to the State Bank of Vietnam that then prepares a consolidated report for submission to the Prime Minister to seek his decision on credit institutions’ application for credit overextension;

c) Assume responsibility to assess and extend credit, carry out post-lending inspection and control, recover debts (principal and interest) and manage risks (if any) as per regulations on credit overextensions.

d) Strictly oversee and ensure customer’s right use of borrowed funds and, submit to the State Bank of Vietnam monthly review reports on credit overextensions approved by the Prime Minister by completing the Forms No. 02 and No. 03 given in the Appendices hereof.

Article 8. Grandfather clause

Credit overextensions approved by the Prime Minister before the date of entry into force of this Decision shall continue to be subject to approval documents issued before that.

article 9. Effect

1. This Decision comes into force from July 01, 2024.

2. This Decision supersedes the Prime Minister’s Decision No. 13/2018/QD-TTg dated March 06, 2018 prescribing eligibility and documentation requirements and procedures for application for approval of credit overextensions granted by credit institutions and foreign bank branches.

Article 10. Responsibility for implementation

...

...

...

PP. THE PRIME MINISTER
THE DEPUTY PRIME MINISTER




Le Minh Khai