ALLOWED TO RECEIVE CREDIT OVEREXTENSIONS IF NOT INCUR BAD DEBTS FOR 03 YEARS
On March 06, 2018, the Prime Minister issues the Decision No. 13/2018/QD-TTg on prescribing eligibility and documentation requirements and procedures for application for approval of credit overextensions granted by credit institutions and foreign bank branches.
Accordingly, borrowing customs, business projects or plans shall be offered credit overextensions provided borrowing customers strictly meets lawful credit extension requirements, have not incurred bad debts for 03 years preceding the year of submission of their applications for credit overextensions, have the ratio in which the debt owed is not three times more than the owner's equity according to their quarterly or annual financial statements...
Credit overextension to a single customer equal total outstanding debt determined as at the reporting time; the remaining balance of credit determined based on the effective credit agreement; the requested amount of new credit extension that is approved...
Credit overextensions approved by the Prime Minister before the effective date of this Decision shall continue to be subject to approval documents issued before that.
This Decision takes effect on May 01, 2018.
