Finance ministry drafts specific regulations for poor credit instutitions
Finance ministry drafts specific regulations for poor credit instutitions
Weak credit institutions in the process of restructuring and dealing with bad debts will be put under special control in accordance with the Law on Credit Institutions, according to a decree being drafted by the Ministry of Finance.
The draft decree, released to the public to gather ideas from relevant sectors, proposes some specific contents of the financial regime for weak credit institutions in the process of restructuring and dealing with bad debts.
Poor credit institutions will use capital and assets under the restructuring plan approved by competent authorities in accordance with provisions of the law.
In terms of turnover, revenues and turnover recognition of weak credit institutions will comply with the financial regime applicable to credit institutions, foreign bank branches and regulations on corporate income tax.
For expenses, weak credit institutions shall make deductions for setting up risk provisions under Article 146 of the Law on Credit Institutions. Rewards for managers and labourers shall be equal to half of the average monthly salary where the institution fulfills the restructuring norms and tasks. The institutions must develop and publicise the regulations on rewards.
The institutions will have to report to the State Bank of Viet Nam fully and promptly on the implementation results as well as financial difficulties and obstructions in order to develop plans to restructure and handle bad debts. They will also publicise financial statements according to the regulations of the central bank.
