The State Bank of Vietnam’s Governor presented to the National Assembly a response report on proposed amendments to the Law on Credit Institutions, addressing parliamentary feedback on the framework for State Bank “special loans” and on codifying bad-debt resolution measures, including collateral seizure, from Resolution 42/2017/QH14. The Government proposed that the amended law take effect on 1 August 2025, 45 days after it is passed. On special lending, the report reaffirmed that zero interest, unsecured central bank loans would apply only in two cases: liquidity support for a credit institution facing mass withdrawals and funding to implement a recovery plan or mandatory transfer for institutions under special control, and only after measures such as refinancing and open market operations have been used. SBV indicated it will review and amend Circular 37/2024/TT-NHNN after the law is enacted, including criteria and conditions for 0% per year unsecured special loans, permitted uses, responsibilities of the borrower and SBV, and controls over funds to prevent abuse; a proposed transitional provision for special loans approved before the law takes effect was removed. For bad-debt resolution, the draft sets conditions and procedures for taking possession of collateral, assigns commune-level authorities and police a role in confirming factual circumstances and maintaining public order during seizures, and includes safeguards against misuse and preserves complaint rights; it also adds provisions on attachment of collateral in enforcement and on returning collateral used as evidence in criminal cases or as exhibits in administrative violation matters, and refines rules on collateral disposal and payment of proceeds. The Government instructed the drafting body to continue reviewing the text and, if needed, to issue or propose implementing guidance under the existing legislative framework without specific delegation in the draft law.
State Bank of Vietnam 2025-06-10
State Bank of Vietnam proposes 1 August 2025 effective date for Credit Institutions Law amendments and will tighten rules for zero interest special loans
The State Bank of Vietnam's Governor presented a report to the National Assembly on proposed amendments to the Law on Credit Institutions, focusing on "special loans" and bad-debt resolution measures. The amendments include conditions for zero interest, unsecured central bank loans, and procedures for collateral seizure, with safeguards against misuse. The Government proposed the amended law take effect on 1 August 2025, and instructed further review and potential guidance issuance.