The impact of the Covid-19 epidemic has increasingly seriously affected the production and business activities of the whole country, thereby affecting the credit activities of the system of credit institutions and foreign bank branches.
Therefore, the Government has requested the State Bank of Vietnam to direct credit institutions to implement a number of solutions, such as reducing loan interest rates, to support businesses and people affected by the Covid-19 epidemic to stabilize production.
1. Support debt extension and interest rate reduction during the Covid-19 pandemic
On February 14, 2, at the regular Government meeting in January 2020, the Government issued Resolution No. 1/NQ-CP with the main content: "The State Bank directs credit institutions to restructure debt repayment terms; exempt and reduce loan interest rates, maintain debt groups, and provide new loans to stabilize production and business, and support businesses and people facing difficulties due to the impact of the pandemic".
Accordingly, on February 24, 2, the State Bank of Vietnam issued Document No. 2020/NHNN-TD, requiring credit institutions to proactively grasp the production and business situation, review and assess the level of damage and impact on customers borrowing capital due to the Covid-1117 epidemic to restructure the repayment period; exempt or reduce loan interest; temporarily maintain the debt group for customers for debts affected by the Covid-19 epidemic and have outstanding principal and/or interest due for repayment in the period from January 19 to March 23, 1 until the State Bank of Vietnam issues a detailed Circular.
2. Conditions apply
The rescheduling, repayment, reduction of loan interests, keeping the group of debts for customers must meet the following 2 requirements:
1. Customers proactively request to extend the repayment term, exemption or reduction of loan interest, maintain the debt group and are assessed by the credit institution on the extent of damage, influence, financial capability and solvency. customer debt after rescheduling.
2. The credit institution shall guide the implementation of this content uniformly throughout the system, which has established specific provisions on: Criteria for determining debts affected by Covid-19 epidemic; The content of checking, controlling and supervising debts has been restructured repayment, exemption and reduction of loan interest rates, and maintained the debt group to uniformly implement the whole system.
At the same time, credit institutions must take the initiative in creating new lending conditions for customers in accordance with regulations to support customers affected by COVID-19 outbreak to stabilize production and business.
The State Bank requires credit institutions to implement in a spirit of initiative, self-determination and responsibility for the support activities in accordance with the guidance in this Official Letter, ensuring strict, safe and proper compliance. statue; prevent and prevent the abuse of mechanisms to reflect credit quality discrepancies.
At the same time, credit institutions must report the results of restructuring the loan repayment, exemption and reduction periods, temporarily keeping the same group of loans and making new loans in accordance with regulations for customers affected. by COVID-19 outbreak on March 15 and March 03 for the State Bank (via Banking Inspection and Supervision Agency, Credit Department of Economic Industries).
