State Bank of Vietnam: Enterprises and people affected by COVID-19 have debt relief and interest rate reduction

The impact of Covid-19 epidemic has increasingly affected the production and business activities of the whole country, thereby affecting the credit activities of the system of credit institutions and foreign bank branches. Therefore, the Government has asked the State Bank of Vietnam to instruct credit institutions to implement some measures to support businesses and people affected by Covid-19 epidemic in order to stabilize production.reduced interest rates during the Covid-19 season

reduced interest rates during the Covid-19 season

Supporting debt relief and reducing interest rates in the Covid-19 season

On February 14, 2, in the Government's regular meeting of January 2020, the Government issued Resolution No. 1 / NQ-CP with the main content: “The State Bank directs credit institutions restructuring the repayment term; loan interest exemption and reduction, keeping the group of debts, new loans to stabilize production and business, support to solve difficulties for businesses and people due to the impact of the epidemic ".

Accordingly, on February 24, 2, the State Bank of Vietnam issued Document No. 2020 / NHNN-TD, which requires credit institutions. consider proactively grasping the situation of production and business, reviewing and assessing the extent of damage and influence of customers who are borrowing capital due to Covid-19 epidemic to implement the debt repayment restructuring; loan interest exemption and reduction; temporarily maintain the debt group for customers for debts affected by Covid-19 epidemic and have outstanding principal and / or interest due to repayment period from January 23 to March 1 / 31 cho until the State Bank of Vietnam issues a Circular with detailed guidance.

Conditions apply

The rescheduling, repayment, reduction of loan interests, keeping the group of debts for customers must meet the following 2 requirements:

1. Customers proactively request to extend the repayment term, exemption or reduction of loan interest, maintain the debt group and are assessed by the credit institution on the extent of damage, influence, financial capability and solvency. customer debt after rescheduling.

2. The credit institution shall guide the implementation of this content uniformly throughout the system, which has established specific provisions on: Criteria for determining debts affected by Covid-19 epidemic; The content of checking, controlling and supervising debts has been restructured repayment, exemption and reduction of loan interest rates, and maintained the debt group to uniformly implement the whole system.

At the same time, credit institutions must take the initiative in creating new lending conditions for customers in accordance with regulations to support customers affected by COVID-19 outbreak to stabilize production and business.

The State Bank requires credit institutions to implement in a spirit of initiative, self-determination and responsibility for the support activities in accordance with the guidance in this Official Letter, ensuring strict, safe and proper compliance. statue; prevent and prevent the abuse of mechanisms to reflect credit quality discrepancies.

At the same time, credit institutions must report the results of restructuring the loan repayment, exemption and reduction periods, temporarily keeping the same group of loans and making new loans in accordance with regulations for customers affected. by COVID-19 outbreak on March 15 and March 03 for the State Bank (via Banking Inspection and Supervision Agency, Credit Department of Economic Industries).

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