GUIDE COMMERCIAL BANKS TO IMPLEMENT INTEREST RATE SUPPORT FOR ENTERPRISES’ LOANS
On May 20, 2022, the State Bank of Vietnam issues the Circular No. 03/2022/TT-NHNN guiding commercial banks to implement interest rate support according to the Government's Decree No. 31/2022/ND-CP dated May 20, 2022 on interest rate support from the State budget for loans of enterprises, cooperatives, business households.
Specifically, by the payment deadline of each interest payment term, commercial banks may provide interest rate support to customers by one of the following methods:
Firstly, directly reducing the customer's loan interest amount that is equal to the loan interest amount provided with interest rate support.
Secondly, collecting the entire loan interest from the customer in the period and refund the customer the loan interest amount provided with interest rate support on the same day of interest collection. In case where the collection of loan interest in the period is performed after working hours of commercial banks, the refund may be done on the next day.
Noticeably, commercial banks provide interest rate support to customers in the order prioritizing the time the interest is paid within the announced interest rate support limit, whichever comes first. In case during the interest rate support process, the remaining interest rate support amount is not enough to support interest payment obligations at the same time of debt repayment, the commercial banks shall provide interest rate support in the order that the customers who have signed the loan agreements should be supported first, and officially announce that on the website of such commercial banks.
This Circular takes effect from May 20, 2022.
