The State Bank of Viet Nam issued Circular No 01/2012/TT-NHNN on discounting of valuable papers of the State Bank for credit institutions and branches of foreign banks.
The State Bank of Viet Nam issued Circular No 01/2012/TT-NHNN on February 16 on discounting of valuable papers of the State Bank for credit institutions and branches of foreign banks.
Valuable papers eligible to be discounted must be denominated in domestic currency, assignable, in the legal possession of the credit institutions and branches of foreign banks, and not issued by the credit institutions and branches of foreign banks. If valuable papers are discounted for their entire remaining term, the maximum remaining term of such valuable papers shall be 91 days.
Credit institutions and branches of foreign banks eligible to participate in discount operations of the State Bank must not be under special control, must not be in default on any debts, and must have an active account opened at an authorised branch of the State Bank. They must submit a timely request dossier to the State Bank, and the valuable papers to be discounted must comform with statutory conditions and be included on the list of discountable valuable papers periodically promulgated by State Bank.
Not later than the 15th day of the first month of each quarter, credit institutions and branches of foreign banks shall submit to a request dossier to the State Bank serving as the basis for the State Bank to determine the approved discount limit to such credit institutions and branches of foreign banks in that quarter.
Upon maturity, if credit institutions and branches of foreign banks fail to pay or make insufficient payment to recover valuable papers, their accounts at the State Bank shall be deducted to recover the debt, and their valuable papers in the custody of the State shall be subject to sale. Such credit institutions and branches of foreign banks will also lose their eligibility to participate in discount operations with the State Bank for six months.
This circular takes effect on March 31, replacing Decision No 898/2003/QD-NHNN of August 2003, Decision No 12/2008/QD-NHNN of April 2008, and Article 1 of Circular 26/2011/TT-NHNN of August 2011.
(Source: VNS)
