On March 13, 2020, the State Bank issued Circular No.
01/2020/TT-NHNN providing guidance for the credit institutions, foreign bank
branches to restructure the debt payment, exemption and reduction periods, charge,
keep the debt group in support of customers affected by Covid-19 epidemic,
which is an important legal grounds to support the economy.
Restructure the Debt
Payment due to Covid-19
Accordingly, the debt group restructuring is carried out as
follows:
Debts which are restructured repayment term are the principal
amount and/or interest (including the debt balance of debts within the scope of
regulation of Decree No. 55/2015/ ND-CP of June 9, 2015 of the Government on
the credit policy for agricultural and rural development (amended and
supplemented)), which fully meets the following conditions: arising from
lending activities, financial leasing; Arising the obligation to repay the
principal and/or interest within the period from January 23, 2020 to the next
day after 03 months from the date the Prime Minister announces the end of the
Covid -19 epidemic; Customers are unable to pay the debt principals and/or
interests on time according to the signed contracts, loan agreements, financial
leases due to the decrease in revenue and income due to Covid -19 epidemic.
The debt repayment restructuring shall be carried out in cases
where the outstanding debt is still due or overdue for up to 10 days from the
due date of payment or due under the contract, financial leasing agreements; or
The overdue debt balance in the period from January 23, 2020 to the next day
after 15 days from the effective date of this Circular.
Credit institutions, foreign bank branches may decide on
rescheduling of repayment of outstanding debts in the above-mentioned cases,
based on customers’ requests and assessments of credit institutions, foreign
bank branch on the ability to repay the principal and/or interest of the
customer in full after rescheduling, in accordance with the influence of Covid
-19 service and ensuring the credit institution, the foreign bank branch fails
to restructure the debt repayment term for debts in violation of legal
regulations and the restructuring time in case of extending an extended
repayment period shall not exceed 12 months from the last day of the debt term,
finance lease (the time the customer must pay all principal and interest under
the signed contract, loan agreement, financial lease).
In addition, credit institutions and foreign bank branches shall
decide on the exemption and reduction of interests and fees according to
internal regulations for the outstanding debts arising from credit extension
activities, except for bond purchase and investment activities for which the
principal and/or interest payment is due within the period from January 23,
2020 to the next day after 03 months from the date of Prime Minister announced
the end of the Covid -19 epidemic and the customer was unable to pay the debt
on time, both principal and/or interest, according to the signed contract or
agreement due to the decrease in revenue and income due to the impact of the
Covid- 19 epidemic.
This Circular takes effect from the date of signing. From the
effective date of this Circular, customers of credit institutions, foreign bank
branches, other relevant organizations and individuals will have their debt
repayment restructured, exemption and reduction periods, charge, keep the debt
group unchanged. The Government has always issued policies, legal documents to
support businesses, organizations and individuals to borrow credit during the
period of the Covid -19 epidemic, so that they can help businesses as well as
the country’s economy to maintain and develop in the future.
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