To be eligible for credit beyond the limit, customers must not have any bad debt record with credit institutions in the three consecutive years preceding the credit request. |
The decision clearly states the conditions for approving credit beyond the limit:
Borrowing customers, projects, or plans requesting credit beyond the limit must meet the following conditions:
Customers must meet the credit eligibility criteria as per legal regulations, have no bad debt with credit institutions in the three consecutive years preceding the request for credit beyond the limit, and their debt-to-equity ratio, as recorded in the latest financial statement at the time of the request, must not exceed three times their equity.
Customers require capital to implement projects or plans for production and business activities that contribute to the country’s socio-economic tasks, falling under one of the following cases:
– Implementing projects or plans with significant socio-economic importance and urgency that contribute to the development of the economy and meet the essential needs of the people in the fields of electricity, coal, oil and gas, gasoline, transportation, public transport, and other fields as directed by the Government or the Prime Minister in each period;
– Implementing investment programs or projects that have been approved in principle by the National Assembly or the Prime Minister;
– Investing in priority or encouraged sectors as per resolutions of the National Assembly and the Government on socio-economic development in each period.
The proposed project or plan for credit beyond the limit must be appraised and assessed as feasible by the credit institution, with the customer having the ability to repay, and must comply with current regulations on investment and construction, be in line with production and business plans, and have been approved by competent authorities or have been granted an Investment Registration Certificate.
The credit institution must meet the following conditions:
Regarding syndicated lending:
– The credit institution has proposed and carried out the necessary procedures in accordance with legal regulations on syndicated lending for projects or plans requesting credit beyond the limit, where the lending capacity of credit institutions has not met the borrowing requirements of a single customer; or
– The credit institution has issued a syndicated loan invitation letter to at least five other credit institutions, posted the invitation letter on its official electronic information portal and on the electronic information portal of the State Bank of Vietnam, the Bank Magazine, or the Bank Times for a minimum of 45 days, but no other credit institution has participated in the syndicated loan.
At the time of the request for credit beyond the limit, the credit institution must meet the requirements for limits and ratios to ensure safety in its operations as prescribed in the Law on Credit Institutions and guiding documents of the State Bank of Vietnam.
The credit institution must fully meet the requirements related to responsibilities and obligations mentioned in the dossier requesting credit beyond the limit and in the previous approval decisions for credit beyond the limit.
The credit institution must ensure compliance with the credit limit regulations specified in Clause 8, Article 136 of the Law on Credit Institutions 2024 when including the proposed credit beyond the limit.
Procedures for considering credit beyond the limit
The decision stipulates that credit institutions shall submit one set of dossiers directly to the One-Door Unit or via postal services to the State Bank of Vietnam.
Within 15 days from the date of receiving the complete dossier from the credit institution:
If the credit institution’s dossier does not meet the prescribed conditions, the State Bank of Vietnam shall notify the credit institution in writing, clearly stating the unmet conditions.
If the credit institution’s dossier is valid, the State Bank of Vietnam shall request the opinions of relevant ministries, sectors, and localities on the economic, technical, and legal aspects of the project, plan, and customer requesting credit beyond the limit.
Within 15 days from the date of receiving the request for opinions from the State Bank of Vietnam, the relevant ministries, sectors, and localities shall provide written opinions on the contents related to their management and send them to the State Bank of Vietnam. Based on the opinions of the ministries, sectors, and localities, the State Bank of Vietnam shall request the credit institution and the customer to explain related issues, if any.
Within 40 days from the date of receiving the opinions of the ministries, sectors, and localities or the explanations of the credit institution and the customer, the State Bank of Vietnam shall verify the reasonableness and legality of the dossier requesting credit beyond the limit provided by the credit institution:
– If the credit institution’s dossier does not meet the prescribed conditions, the State Bank of Vietnam shall notify the credit institution in writing, clearly stating the unmet conditions.
– If the credit institution’s dossier is reasonable and valid, the State Bank of Vietnam shall submit it to the Prime Minister for consideration and decision on the credit institution’s request for credit beyond the limit.
Based on the request for credit beyond the limit from the credit institution, the opinions of the State Bank of Vietnam and relevant ministries, sectors, and localities, the Prime Minister shall decide on the credit institution’s request for credit beyond the limit.
Phuong Nhi
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