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The timeframe for loan repayment restructuring will be determined by the credit institutions but cannot exceed 12 months from the due date of the outstanding balance being restructured. (Photo: SGGP) |
As of April 24, foreign banks and credit organizations have officially initiated a restructuring of loan repayment terms while retaining the current debt group to assist customers who are experiencing challenges in their production and business operations, as well as those who are finding it difficult to repay their loans for personal consumption.
The State Bank of Vietnam (SBV) has issued Circular No.02/2023, officially regulating credit institutions and foreign bank branches in Vietnam to restructure loan repayment terms while maintaining the existing debt group, providing support to customers who are facing challenges in their production and business operations, as well as those who are struggling to repay their loans for personal consumption purposes. This loan repayment restructuring will be implemented from April 24 to June 30, 2024, the effective date of the circular. The outstanding balance of the loan being restructured must be within the repayment deadline or up to ten days past the deadline, as stipulated in the contract or agreement.
Loans that will have their repayment schedule restructured while maintaining the existing debt group include loans for lending and financial leasing. The SBV has delegated the authority to credit institutions and foreign bank branches to proactively assess the difficulties faced by their customers and decide on restructuring their loans. The timeframe for loan repayment restructuring will be determined by the credit institutions but cannot exceed 12 months from the due date of the outstanding balance being restructured.
The above regulation aims to implement the Government's directives stated in Resolution 50/NQ-CP dated April 8, 2023, and Resolution 59/NQ-CP dated April 23, 2023, which provide solutions to support customers borrowing for personal consumption purposes, as proposed by the SBV.
The Government has tasked the SBV with promptly issuing guidelines for credit institutions to implement the regulation, ensuring compliance, strictness, feasibility, effectiveness, transparency, and legality, while ensuring the safety of credit institution systems. Additionally, it calls for enhanced inspection, supervision, and control to ensure policy compliance in accordance with legal regulations, limit risks, and prevent abuse, profiteering, losses, and violations of the law.
The SBV states that in addition to the policies aimed at alleviating difficulties faced by individuals and businesses, the policy of restructuring loan repayment schedules while maintaining the existing debt group under Circular No.02 will make a direct contribution towards resolving the problems faced by people and businesses by extending the time for borrowing and bank loan repayment. It will create opportunities to continue revolving capital and access new loans for production, business activities, and personal consumption. This will ultimately contribute to the development of production and promote economic growth towards the objectives set out for 2023 and the 2021-2025 period.
