1 Circular 03/2023/TT-NHNN stipulating the suspension of the implementation of Clause 11, Article 4 of Circular 16/2021/TT-NHNN regulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches promulgated by the Governor of the State Bank of Vietnam

CIRCULARS

REGULATION TO CEASE IMPLEMENTATION CLAUSE 11 ARTICLE 4 CIRCULAR NO 16/2021/TT-NHNN NOVEMBER 10, 2021 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM REGULATIONS ON CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES BUYING AND SELLING CORPORATE BOND

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; Law amending and supplementing a number of articles of the Law on Credit Institutions dated November 20, 2017;

Based decree 102/2022/ND-CP December 12, 2022 of the Government regulating the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam issued a Circular stipulating the suspension of the implementation of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN November 10, 2021 of the Governor of the State Bank of Vietnam regulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches (hereinafter referred to as Circular No. 16/2021/TT- SBV).

Article 1. Stop taking effect from April 24, 2023 to December 31, 2023 for the provisions in Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN .

During the period of suspension of implementation of Clause 11, Article 4 of Circular No 16/2021/TT-NHNN According to the provisions of this Article, credit institutions and foreign bank branches (hereinafter referred to as credit institutions) are allowed to buy back corporate bonds that have not been listed on the stock market or have not been registered for trading on the stock market. Upcom trading system (hereinafter referred to as unlisted corporate bonds) that credit institutions have sold and/or unlisted corporate bonds issued in the same lot/same issuance as corporate bonds unlisted but sold by a credit institution when:

a) Meets the regulations in Article 4 of Circular No 16/2021/TT-NHNN ;

b) The party buying this corporate bond from a credit institution pays the entire amount of the purchase of corporate bonds at the time the credit institution signs the contract to sell corporate bonds to the bond purchaser;

c) The enterprise issuing bonds is rated at the highest level according to the credit institution's internal credit rating regulations at the most recent time before the credit institution purchases corporate bonds.

Article 2. Implementation provisions

This Circular takes effect from April 24, 2023.

Article 3. Responsibility for implementation

Chief of Office, Director of Monetary Policy Department, Heads of units under the State Bank of Vietnam, Directors of State Bank branches in provinces and centrally-run cities, and credit institutions are responsible for responsible for organizing the implementation of this Circular./.