Banks with massive withdrawals are given loans by the State Bank

The State Bank said it has just issued Circular 37 regulating special loans.

Accordingly, the notable point of this Circular is the mention of loans to credit institutions (except cooperative banks) that are subject to mass withdrawals.

Accordingly, the special borrower is only allowed to use the special loan from the State Bank to pay the deposits in Vietnamese Dong of individual depositors. The use of the special loan to pay the deposits of other entities is decided by the Governor of the State Bank in each specific credit institution case.

In addition, the Circular also stipulates special lending to specially controlled credit institutions, which are commercial banks, cooperative banks, finance companies, and microfinance institutions, to implement approved recovery plans.

Special loans to specially controlled commercial banks to implement the compulsory transfer plan under the Law on Credit Institutions 2024 have been approved.

Special loans to specially controlled commercial banks to support recovery under the compulsory transfer scheme under the Law on Credit Institutions 2010 have been approved.

Vietnam Cooperative Bank provides special loans in the following cases: Special loans to people's credit funds that are subject to mass withdrawals to pay deposits to depositors; special loans to people's credit funds under special control to implement approved recovery plans.

The State Bank shall consider and decide on the term of special loans, guaranteed to be under 12 months; consider extending the term of special loans based on the repayment capacity of the special borrower or the plan to handle the borrowed special loan in the restructuring plan being submitted to the State Bank (if any), with each extension period being under 12 months.

The interest rate for special loans and special loan extensions is equal to the refinancing interest rate in the form of loans secured by collateral on the date of disbursement and special loan extensions. The overdue interest rate is 130% of the special loan interest rate in the most recent term of the special loan. No interest is applied to late interest debt.

Source: https://laodong.vn/kinh-doanh/ngan-hang-bi-rut-tien-hang-loat-duoc-nhnn-cho-vay-tien-1388555.ldo