DEBT RESCHEDULING FOR CLIENTS AFFECTED BY THE COVID-19 PANDEMIC UNTIL DECEMBER 31, 2021
On April 02, 2021, the State Bank of Vietnam issues the Circular No. 03/2021/TT-NHNN amending and supplementing a number of articles of the Circular No. 01/2020/TT-NHNN dated March 13, 2020 of the State Bank Governor of Vietnam on credit institutions and foreign bank branches carrying out debt rescheduling, giving exemption from or reduction of loan interests and charges, and maintaining classified loan groups in order to help their clients affected by the Covid-19 pandemic.
Accordingly, credit institutions and foreign bank branches shall conduct debt rescheduling debit balance of debts that fully meet the following conditions:
Firstly, arising before June 10, 2020, from lending and financial leasing activities;
Secondly, giving rise to obligations to repay loan principals and/or interests from January 23, 2020 to December 31, 2021.
Thirdly, the debt rescheduling for a debit balance of debts shall be carried out in the following cases: Such debit balance is not due or falls overdue for up to 10 days from the due date under the contract or agreement; Debit balance of the debts arising before January 23, 2020 and overdue from January 23, 2020 to March 29, 2020; Debit balance of the debts arising from January 23, 2020 and overdue before May 17, 2021.
Fourthly, being of clients that are unable to make due payment of their loan principals and/or interests under contracts or agreements due to loss of their revenues or incomes as a consequence of the Covid-19 pandemic, as evaluated by credit institutions or foreign bank branches; etc.
The debt rescheduling for clients shall be carried out until December 31, 2021.
This Circular takes effect on May 17, 2021.
