1
Chat with us?

3 CONDITIONS FOR RESCHEDULING THE DEBT PAYMENT TERM DUE TO THE COVID-19 EPIDEMIC

On March 13, 2020, the State Bank of Vietnam promulgates the Circular No. 01/2020/TT-NHNN on providing regulations on the credit institutions and foreign bank branches’ debt rescheduling, exemption and reduction of interest rates and fees, keeping the debt group in order to support customers affected by the Covid-19 epidemic.

Specifically, debts with the rescheduled repayment term are the principal balance and/or interest that fully meet the following conditions:

Firstly, arising from the lending activities and financial lease.

Secondly, incurring the obligation to pay the principal debts and/or interest during the period from January 23, 2020 to the next day after 03 months from the date of announcement of the Covid-19 epidemic termination by the Prime Minister.

Thirdly, the customer is unable to pay the principal debts and/or interest in due time according to the signed contract, loan agreement or financial leasing agreement due to the revenue and income affected by the Covid-19 epidemic.

Within that, the debt rescheduling shall be carried out with the debit balance if the debit balance is overdue during the period from January 23, 2020 to the next day after 15 days from the effective day of this Circular...

Credit institutions and foreign bank branches shall decide the exemption and reduction of interest and fees in accordance with the internal regulations on the debit balance arising from the activities of credit extension (except for the activities of purchase and investment of corporate bonds) for which the obligations of payment of principal debts and/or interest are due within the period from January 23, 2020 to the next day after 03 months from the date on which the Prime Minister announces the Covid-19 epidemic's termination.

This Circular takes effect on March 13, 2020.

WHO WE SERVE