In light of the new, complex, and unpredictable developments of the COVID-19 pandemic worldwide and in Vietnam, the State Bank of Vietnam has issued the following: Circular 01-2020-TT-NHNN on bank support for customers affected by Covid-19 Regarding bank support for customers affected by Covid-19, various measures have been implemented, such as: reducing interest rates, extending or postponing debt repayments; waiving or reducing certain transaction fees, etc.
Speaking at the meeting, Deputy Governor Dao Minh Tu emphasized that Circular 01 was issued to promptly support and alleviate difficulties for businesses and individuals who borrowed capital and suffered losses due to the impact of the Covid-19 pandemic.
The circular provides a legal basis for guiding credit institutions and branches of foreign banks to restructure loan repayment terms, waive or reduce interest rates, and maintain the same loan classification for businesses and individuals who have suffered losses due to the impact of the Covid-19 pandemic.
The guiding principle behind drafting the Circular is to maximize the authority and responsibility of credit institutions in coordinating with borrowers to consider and decide on the extent and duration of support for businesses to restructure loans and overcome difficulties caused by the pandemic. At the same time, the new Circular will clarify the responsibilities of credit institutions and borrowers when implementing this support policy, ensuring that it targets the right beneficiaries, is objective, and is not exploited.
Article 4 of the Circular stipulates that restructured debt is the outstanding principal and/or interest (including the outstanding balance of debts falling within the scope of Government Decree No. 55/2015/ND-CP dated June 9, 2015 on credit policies serving agricultural and rural development (as amended and supplemented)) that fully meets the following conditions:
(a) Arising from lending and financial leasing activities;
(b) The obligation to repay principal and/or interest arises during the period from January 23, 2020 to the day immediately following three months from the date the Prime Minister announces the end of the Covid-19 epidemic;
(c) Customers are unable to repay principal and/or interest on time due to a decrease in revenue and income caused by the Covid-19 pandemic.
Credit institutions and branches of foreign banks are responsible for providing specific guidance on criteria for determining the outstanding debt of customers affected by the Covid-19 pandemic, including criteria for customers whose revenue and income have decreased due to the Covid-19 pandemic.
Article 5 of the Circular stipulates that credit institutions and branches of foreign banks shall decide on the exemption or reduction of interest and fees according to their internal regulations for outstanding loan balances arising from credit granting activities (excluding the purchase and investment of corporate bonds) where the principal and/or interest repayment obligations fall within the period from January 23, 2020 to the day immediately following three months from the date the Prime Minister announces the end of the Covid-19 epidemic, and the customer is unable to repay the principal and/or interest on time due to a decrease in revenue and income caused by the Covid-19 epidemic.
Article 7 of the Circular specifies the responsibilities of credit institutions and branches of foreign banks to issue internal regulations on restructuring loan repayment periods, waiving or reducing interest, and maintaining loan classifications in accordance with the provisions of this Circular, in order to ensure uniform implementation throughout the system, strict supervision, safety, and prevention of the misuse of loan repayment period restructuring, interest waivers or reductions, and maintaining loan classifications for personal gain or to misrepresent credit quality.
Article 8 of the Circular specifies the responsibilities of units under the State Bank of Vietnam in inspecting, supervising, and handling issues arising during the implementation of the Circular by credit institutions and branches of foreign banks.
The conditions for a preferential loan are:
- Arising from lending and financial leasing activities;
- The obligation to repay principal and/or interest arises during the period from January 23, 2020 to the day immediately following three months from the date the Prime Minister announces the end of the Covid-19 epidemic;
- Customers are unable to repay principal and/or interest on time due to a decrease in revenue and income caused by the Covid-19 pandemic.
If your business meets the above conditions, please follow these steps:
- Contact the bank where your business has a loan to request the necessary documentation.
- Businesses prepare the necessary documents and submit them to the bank for review.
Notify Experts
- Expertis customers, please let us know your support needs. Please provide the following details.
Working with the bank
- Within one business day of receiving your notification, we will have a representative contact the bank and respond to you via email with details of your application and the bank's policies.
Prepare documents
- Expertis continues to assist clients in preparing documentation to demonstrate business damage/impairment in order to meet bank policy requirements.
Submit the documents to the bank.
- Expertis will assist you in submitting your documents to the bank by: Sending a delivery staff member to your location to collect the documents and forward them to the person responsible for review at the bank.
Track the results
- Expertis will assist in monitoring the results from the bank, and the bank will notify you directly if your application is approved.
