The State Bank of Vietnam (SBV) has issued Circular No.10/2022-TT-NHNN on refinancing the Vietnam Bank for Social Policies (VPSB) so it can roll out a number of relief measures for pandemic-hit labourers and employers affected by the pandemic (Illustrative photo: VNA) Hanoi (VNA) – The State Bank of Vietnam (SBV) has issued Circular No.10/2022-TT-NHNN on refinancing the Vietnam Bank for Social Policies (VPSB) so it can roll out a number of relief measures for pandemic-hit labourers and employers affected by the pandemic.
Accordingly, the SBV provided 7.5 trillion VND (330.38 million USD) without collateral for the VBSP, and the refinancing interest rate and overdue refinancing interest rate are both 0 percent per annum.
The refinancing term is 364 days, counting from the day after the date the SBV disburses the amount for the VBSP.
The term for the disbursement of the refinancing sum is from the date of signing of the first lending contract, either to March 31, 2022 or until the completion of disbursement of the 7.5 trillion VND, depending on which condition comes first.
When the refinancing loan is due, the VBSP has to pay the principal debt to the VSB using the debt payment paid by employers who took out loans to pay salary for workers in accordance with Decision No. 23/2021/QD-TTg.
In case by the end of April 5, 2022, the VBSP cannot entirely disburse the sum, it must return the remainder to the SBV before April 15, 2022.
In case the refinancing sum is due and the VBSP cannot pay the debt, the SBV will move the sum to the overdue watch list in line with regulations.
If there are debt payments of employers to settle their debts, within the first 10 working days of the next month, the VBSP needs to use all the amount of debt payments they receive in the month to pay back the refinancing loan (including outstanding loans moved to the watch list and those have yet to past the due dates), except for arising re-fund stated in Clause 4, Article 42 of Decision No.23/2021/QD-TTg.
In case the VBSP is found to receive debt payments from borrowing employers but not pay back refinancing loan as stipulated, the SBV will apply the same overdue interest rate that the VBSP charges borrowing employers to the relevant amount of overdue refinancing capital. The rate is 12 percent per annum as promulgated in Decision No.23/2021/QD-TTg. The duration that the overdue interest rate is counted from the following day of the due date according to regulation in this circular until the day the VBSP finishing paying the remaining amount.
The VBSP is responsible for the appropriate use of the refinancing loan; keep a close watch on and strictly manage the capital. By April 2022, the bank must report the disbursement of the sum to the SBV Governor, as well as the monetary policies authority, the Banking Supervision Agency, the SBV operations centre and authority of credit for economic sectors.
Within the first 10 working days of each month, the bank has to report to the SBV and aforementioned agencies on loan payment using debt payments from borrowing employers in tandem with Appendix VI issued alongside the Circular, and work to collect debt payment from employers to settle the refinancing debt on time.
Per Decision No.23/2021 dated July 7 of the Prime Minister, employers are eligible to borrow money to pay salary for their employees when they fulfil conditions of having contract employees join mandatory social security to the most recent month before they had to suspend working, or those who stopped operations for 15 consecutive days between May 1, 2021 and March 3, 2022; and have no bad debts at credit institutions, among others.
The borrowed amount is capped at the region-based minimum wage for employers who stopped paying salary for three months, with a duration of less than 12 months.
Loans to pay salary for employees to serve the restoration of business operations is no more than the region-based minimum wage for labourers with contracts, with a term of less than 12 months./.
