Loans granted by using trust funds

 

1. Accounting principles:

a) This account shall be used for reflecting the amounts that microfinance institutions lend to domestic customers to serve predetermined purposes by using funds held in trust for the Government, domestic and foreign organizations and individuals;

b) Microfinance institutions shall have to keep a detailed journal of loans specific to lending contracts or agreements, terms, maturity dates, qualified borrowers and paid amounts, etc.;

d) Microfinance institutions must comply with applicable regulations set out in laws for microfinance institutions on lending operations, including those regulations on qualified borrowers, lending term and property put up as collateral for loans, etc.;

d) Microfinance institutions classify loans provided by using funds held in trust and account for loans classified into debt groups in accordance with existing regulations on debt classification applied to microfinance institutions.

2. Account 251 can be subdivided into tier-2 accounts, including:

Account 2511- Short-term loans granted by using the Government’s funds

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a short term by using funds held in trust for the Government.

Account 2511 can be subdivided into tier-3 accounts, including:

Account 25111- Pass/standard loans

Account 25112- Watch/special mention loans

Account 25113- Substandard loans

Account 25114- Doubtful loans

Account 25115- Loss loans

Structure and entries of the account 2511 are the same as the account 2011.

Account 2512- Medium-term loans granted by using the Government’s funds

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a medium term by using funds held in trust for the Government.

Account 2512 can be subdivided into tier-3 accounts, including:

Account 25121- Pass/standard loans

Account 25122- Watch/special mention loans

Account 25123- Substandard loans

Account 25124- Doubtful loans

Account 25125- Loss loans

Structure and entries of the account 2512 are the same as the account 2011.

Account 2513- Long-term loans granted by using the Government’s funds

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a long term by using funds held in trust for the Government.

Account 2513 can be subdivided into tier-3 accounts, including:

Account 25131- Pass/standard loans

Account 25132- Watch/special mention loans

Account 25133- Substandard loans

Account 25134- Doubtful loans

Account 25135- Loss loans

Structure and entries of the account 2513 are the same as the account 2011.

Account 2514- Short-term loans granted by funds of domestic entities or persons

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a short term by using funds held in trust for domestic entities or persons.

Account 2514 can be subdivided into tier-3 accounts, including:

Account 25141- Pass/standard loans

Account 25142- Watch/special mention loans

Account 25143- Substandard loans

Account 25144- Doubtful loans

Account 25145- Loss loans

Structure and entries of the account 2514 are the same as the account 2011.

 

Account 2515- Medium-term loans granted by funds of domestic entities or persons

 

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a medium term by using funds held in trust for domestic entities or persons.

Account 2515 can be subdivided into tier-3 accounts, including:

Account 25151- Pass/standard loans

Account 25152- Watch/special mention loans

Account 25153- Substandard loans

Account 25154- Doubtful loans

Account 25155- Loss loans

Structure and entries of the account 2515 are the same as the account 2011.

Account 2516- Long-term loans granted by funds of domestic entities or persons

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a long term by using funds held in trust for domestic entities or persons.

Account 2516 can be subdivided into tier-3 accounts, including:

Account 25161- Pass/standard loans

Account 25162- Watch/special mention loans

Account 25163- Substandard loans

Account 25164- Doubtful loans

Account 25165- Loss loans

Structure and entries of the account 2516 are the same as the account 2011.

Account 2517- Short-term loans granted by funds of foreign entities or persons

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a short term by using funds directly held in trust for foreign entities or persons.

Account 2517 can be subdivided into tier-3 accounts, including:

Account 25171- Pass/standard loans

Account 25172- Watch/special mention loans

Account 25173- Substandard loans

Account 25174- Doubtful loans

Account 25175- Loss loans

Structure and entries of the account 2517 are the same as the account 2011.

Account 2518 – Medium-term loans granted by funds of foreign entities or persons

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a medium term by using funds directly held in trust for foreign entities or persons.

Account 2518 can be subdivided into tier-3 accounts, including:

Account 25181- Pass/standard loans

Account 25182- Watch/special mention loans

Account 25183- Substandard loans

Account 25184- Doubtful loans

Account 25185- Loss loans

Structure and entries of the account 2518 are the same as the account 2011.

 

Account 2519- Long-term loans granted by funds of foreign entities or persons

 

This account shall be used for recording Vietnamese dong funds that microfinance institutions lend to domestic customers during a long term by using funds directly held in trust for foreign entities or persons.

Account 2519 can be subdivided into tier-3 accounts, including:

Account 25191- Pass/standard loans

Account 25192- Watch/special mention loans

Account 25193- Substandard loans

Account 25194- Doubtful loans

Account 25195- Loss loans

Structure and entries of the account 2513 are the same as the account 2011.