Amending and supplementing the stipulation on purchase of corporate bonds by credit institutions and branches of foreign banks
On June 18, 2018, the State Bank of Vietnam issued Circular No. 15/2018/TT-NHNN amending the Circular No. 22/2016/TT-NHNN dated June 30, 2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks.
The new Circular amends to Point d and addition of Point dd to Clause 2 Article 3 as follow: “d) Regulations on internal control of purchase of corporate bonds, especially bonds issued for implementation of programs/ projects in sectors posing potential risks according to the evaluation by credit institutions/ branches of foreign banks so as to discover risks or violations and ensure the recovery of corporate bond principals and interests;
dd) Specific regulations on sectors posing potential risks and credit/ investment policies in these sectors.”
The Circular also adds to Clause 6 to Article 3: Credit institutions and branches of foreign banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer.
The Article 4 of Circular No. 22/2016/TT-NHNN is abrogated.
Circular No. 15/2018/TT-NHNN comes into force from August 02, 2018. With regard to contracts for purchase of corporate bonds entered into before the date of entry into force of this Circular, credit institutions, branches of foreign banks and customers will continue performing contents of such contracts or make adjustments to such contracts in conformity with regulations in this Circular.