On 26 December 2022, the SBV Governor promulgated Circular 18/2022/TT-NHNN amending Circular 09/2015/TT-NHNN on debt purchase and sale by credit institutions and foreign bank branches. Accordingly, cases where credit institutions are not required to satisfy the requirement for a non-performing loan ratio below 3% are supplemented as follows:
– Credit institutions under special control purchasing qualified debts as prescribed by Clause 2 Article 146a of the Law on Credit Institutions;
– Credit institutions under special control purchasing qualified debts of supporting credit institutions following the scheme for the recovery of credit institutions under special control approved following Clause 1 Article 148b of the Law on Credit Institutions;
– Commercial banks being subject to mandatory transfer plans (transferor) purchasing qualified debts of credit institutions that receive shares/stakes under mandatory transfer plans (transferees) following the compulsory transfer scheme approved by competent authorities;
– Cases of debt purchase prescribed in Points a(ii) and a(iii) Clause 6 Article 5 of Circular 09/2015/TT-NHNN (amended by Circular 18/2022/TT-NHNN) specifically:
+ Credit institutions re-purchasing debts sold to credit institutions under special control following the scheme for the recovery of credit institutions under special control approved according to Clause 6 Article 148đ of the Law on Credit Institutions;
+ Transferees re-purchasing debts sold to transferors according to Point c Clause 12 Article 5 of Circular 09/2015/TT-NHNN (amended by Circular 18/2022/TT-NHNN).
Circular 18/2022/TT-NHNN comes into force as of February 9, 2023.