The State Bank is drafting a Prime Minister's Decision regulating the conditions, documents, and procedures for requesting approval of maximum credit limits exceeding the limits of credit institutions and foreign bank branches.
The Draft Decision clearly states the conditions for considering and approving credit exceeding the limit. Specifically, borrowers, projects and plans proposed for credit exceeding the limit must meet the following conditions:
Customers meet the credit granting conditions as prescribed by law, have no bad debts in the last 3 years immediately preceding the year of requesting credit granting exceeding the limit, have a debt-to-equity ratio of no more than three times the equity recorded on the customer's quarterly financial statements or annual financial statements at the time closest to the time of requesting credit granting exceeding the limit.
Customers who need capital to carry out projects and business production plans that contribute to the implementation of the country's socio-economic tasks in one of the following cases:
Implement projects and plans of important and urgent socio-economic significance to carry out socio-economic development tasks, serving the essential needs of people's lives in the following sectors and fields: electricity, coal, oil and gas, petrol, transportation, public transport and other sectors under the direction of the Government and the Prime Minister in each period.
Implement investment programs and projects decided by the National Assembly or the Prime Minister. Invest in priority and encouraged areas according to the Resolution of the National Assembly and the Government on socio-economic development in each period.
The project or plan for requesting credit exceeding the limit has been assessed by the credit institution as feasible, the customer has the ability to repay the debt and the decision to grant credit; meets current regulations on investment and construction, is consistent with the planning and production and business plan and has been approved by the competent authority or granted an Investment Registration Certificate.
Credit institutions meeting the conditions for granting syndicated credit: Have proposed and implemented the necessary procedures according to the provisions of law on granting syndicated credit for projects and plans requesting credit exceeding the limit where the syndicated capital capacity of credit institutions has not yet met the loan requirements of a customer;
Or has issued a letter of invitation to join the capital syndication to at least 5 other credit institutions, posted on the official website of the credit institution and mass media for at least 30 working days but no other credit institution participates in the capital syndication.
At the time of requesting credit exceeding the limit, the credit institution must meet the requirements on limits and safety ratios in operations as prescribed by the Law on Credit Institutions 2024 and its amendments and supplements (if any).
Fully comply with the requirements related to responsibilities and obligations stated in the application for credit extension exceeding the limit and the previous approval documents for credit extension exceeding the limit.
Ensure compliance with the regulations on credit limits in Clause 8, Article 136 of the Law on Credit Institutions 2024 when calculating the credit limit exceeding the proposed limit.
Procedure for reviewing credit granting beyond the limit
Credit institutions send the State Bank of Vietnam 01 set of documents directly to the One-Stop Department or via postal service.
Within 15 working days from the date of receipt of complete documents from the credit institution, the State Bank of Vietnam shall issue a written request for opinions from relevant ministries, branches and localities on the economic - technical - legal aspects of the project, plan and customer requesting credit exceeding the limit.
Within 10 working days from the date of receipt of the request for comments from the State Bank of Vietnam, ministries, branches and localities shall send written comments on the contents under their management to the State Bank of Vietnam.
Based on the comments of ministries, branches and localities, the State Bank of Vietnam requests credit institutions and customers to explain related issues (if any).
Based on the credit institution's request for credit exceeding the limit, the opinions of the State Bank of Vietnam and ministries, branches and localities, the Prime Minister shall give written opinions on the credit institution's request for credit exceeding the limit.
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