Syndicated credit shall be extended voluntarily by members on the principle of co-appraisal and co-decision on extension of credit to clients and co-accountability for credit extension results. Members shall contribute capital (or perform obligations) according to their extension proportions specified in the loan syndication contract, enjoy benefits (interests and charges under regulations) and share arising expenses and risks stated in the loan syndication contract.

The focal-point syndicated credit-extending member may act as the focal-point syndicated credit extension-arranging member, focal-point payment member or focal-point security asset-receiving member. Foreign credit institutions, when participating in extending syndicated credit, may not act as focal-point syndicated credit-extending members, focal-point payment members or focal-point security asset-receiving members.

Forms of syndicated credit extension include provision of syndicated loan; Loan syndication for guarantee; Loan syndication for discount; Loan syndication financial lease; Loan syndication for factoring; Loan syndication for combination of the above forms of credit extension.

This Circular takes effect on December 15, 2011, and replaces the State Bank Governor’s Decision No. 286/2002/QD-NHNN of April 3, 2002, promulgating the Regulation on co-financing by credit institutions, and the Decision No. 886/2003/QD-NHNN of August 11, 2003 and the State Bank’s Circular No. 08/2006/TT-NHNN of October 12, 2006.

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