Decision No. 254/QD-TTg of March 01, 2012, approving the project on “restructuring the system of credit institutions during 2011 – 2015”

DECISION

APPROVING THE PROJECT ON “RESTRUCTURING THE SYSTEM OF CREDIT INSTITUTIONS DURING 2011 – 2015”

THE PRIME MINISTER

Pursuant to the Law on Government organization dated December 25^th 2001

Pursuant to the Law on the State bank dated June 16^th 2010;

Pursuant to the Law on credit institutions dated June 16^th 2010;

Pursuant to the Conclusion No. 10-KL/TW dated October 18^th 2011 of the 3rd Convention of the 11^th Central Steering Committee about the economy, the society, the State budget and finance during 2006 – 2010 and in 2011; the plan for developing the society, the State budget and finance during 2011 – 2015 and in 2012;

Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 03^rd 2012 on primary solutions for implementing the plan for socio-economic development and State budget estimate in 2012;

At the request of the Governor of the State bank of Vietnam,

DECIDES:

Article 1. Approving the Project on “Restructuring the system of credit institutions during 2011 – 2015”.

Article 2. Implementation organization

1. The State bank of Vietnam shall:

a) Cooperate with relevant Ministries, organizations, and People’s Committees of central-affiliated cities and provinces (hereinafter referred to as provincial People’s Committees) in executing the Project;

b) Assess the operation and determine the quality of assets and bad debts of credit institutions;

c) Cooperate with relevant Ministries and organizations in formulating and submitting the project “Strategy for banking development by 2020” and the project “Dollarization prevention” to the Prime Minister;

d) Cooperate with relevant Ministries and organizations in formulating Decisions on the capital contribution to and purchase of shares of the State bank of Vietnam made by credit institutions as prescribed in Clause 3 Article 149 of the Law on credit institutions, and submit them to the Prime Minister for issuance before July 01^st 2012;

dd) Provide instructions and supervise the credit institutions formulating and implementing the plans for restructuring according to the solutions in the Project enclosed with this Decision;

e) Enhance the state management, inspection, and supervision of the money market and the operation of credit institutions;

g) Cooperate with the Ministry of Information and Communications, other organizations, provincial People’s Committees, communication agencies in providing information and propagate the policies on money, banking, and restructuring of credit institutions in order to relieve anxiety, achieve social consensus, and avoid negative impacts on the banking system and financial market;

h) Instruct and assists relevant Ministries and  organizations in implementing the Projects; make and send periodic reports to the Prime Minister before July 01^st and December 31^st on the progress, result, difficulties, and suggested solutions; promptly report the difficulties beyond authority to the Prime Minister.

2. The Ministry of Finance shall:

d) Cooperate with the State bank of Vietnam in promulgating and submitting the plan for settling bad debts of credit institutions and increasing charter capital of commercial bank by 2015 to the Prime Minister;

b) Cooperate with the State bank of Vietnam in formulating the policies and regulations on the exemption and reduction of tax and fees related to the sale of bad debts and collateral of restructured credit institutions, the reduction and exemption of enterprise income tax applicable to credit institutions after merger, amalgamation, and acquisition; the reduction and exemption of tax and fee applicable to people’s credit funds and microfinance institutions.

3. Relevant Ministries, organizations, and local governments shall:

a) Implement the Project within the scope of their functions and tasks as prescribed by law;

b) The Ministry of Information and Communications, relevant Ministries, organizations, and provincial People’s Committees shall tightly cooperate with the State bank of Vietnam in providing information and propagating the policies on money, banking, and restructuring of credit institutions.

c) The Ministry of Public Security, relevant Ministries, organizations, and provincial People’s Committees shall tightly cooperate with the State bank of Vietnam in discovering and handling the violations against the law on money and banking;

d) Assist credit institutions in completing legal dossiers on collateral so that credit institutions are able to sell and recoup their capital as soon as possible;

dd) State-owned general companies and corporations that own credit institutions are responsible for the restructuring and handle the consequences related to credit institutions, and plan an itinerary to withdraw capital from credit institutions.

4. Credit institutions shall:

a) Formulate and implement the plan for restructuring.

b) Ensure the stable operation, the safety of state-owned assets and lawful interests of citizens during the restructuring;

c) Strictly abide by the laws and the instructions of the Government and the State bank of Vietnam in restructuring credit institutions;

d) Send accurate and thorough reports to the State bank of Vietnam on the difficulties and suggest solutions for restructuring credit institutions.

Article 3. This Decision takes effect from the day on which it is signed.

Article 4. The Governor of the State bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the President of the provincial People’s Committee, the Presidents of the Boards of Directors and General Directors of credit institutions are responsible for the implementation of this Decision./.

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