TO RESCHEDULE DEBT FOR CLIENTS UNTIL JUNE 30, 2022
The Circular No. 14/2021/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 is issued on September 07, 2021 by the State Bank of Vietnam.
Accordingly, credit institutions and foreign bank branches shall reschedule debit of balance of loan principal and/or interest of the debt that fully meet the following conditions: Arising before August 01, 2021, from lending and financial leasing activities; Giving rise to obligations to repay loan principals and/or interests from January 23, 2020 to June 30, 2022; etc.
Apart from the above-mentioned conditions, the following conditions must also be satisfied: Clients 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; Clients request for debt rescheduling and such clients are evaluated by credit institutions or foreign bank branches of capability to pay off loan principals and/or interests according to the rescheduled period, etc
Credit institutions and foreign bank branches shall refuse to reschedule debts in violation of law. The rescheduled period (including the case of debt extension) shall be in line with the severity of impacts of the Covid-19 pandemic on clients and must not exceed 12 months from the date on which the credit institutions or foreign bank branches reschedule debts or from the due date of each debit balance eligible for rescheduling. The debt rescheduling for clients shall be carried out until June 30, 2022.
This Circular takes effect on September 07, 2021.
