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| The headquarters of the State Bank of Vietnam__Photo: VNA |
The State Bank of Vietnam (SBV) would provide special loans at a zero-percent interest rate and unsecured loans to credit institutions undergoing special control and carrying out restructuring plans, and those facing mass withdrawals, according to the latest draft decision on such loans.
As required by the draft, credit institutions placed under special control must have restructuring plans that have been approved by competent authorities or are being considered for approval by the SBV under the 2024 Law on Credit Institutions. Such plans must include proposals on special loans.
For special loans at a zero-percent interest rate, a credit institution must draw up a list of collateral items as specified in the SBV’s guidelines on special loans. Meanwhile, if applying for an unsecured loan, the credit institution must prove that it has not prepared a list of collateral items while facing an annual lending interest rate of zero percent or a higher rate.
Such special loans would have to be used for banking operations and other business activities that are consistent with licenses and restructuring plans of credit institutions. Term of special loans would not be permitted to exceed the duration of implementation of restructuring plans.
Regarding credit institutions facing mass withdrawals, the condition for a credit institution to apply for an unsecured special loan is that such credit institution is facing mass withdrawals and has implemented/is implementing measures to respond to mass withdrawals specified in the 2014 Law on Credit Institutions. Besides, it must have filed a request for special loan or special loan term extension providing information about being yet to draw up a list of collateral items under the SBV’s regulations on special loans.- (VLLF)
