COVID-19 Translation: The State Bank implements solutions to support customers

On February 24, the State Bank of Vietnam issued Document No. 1117 / NHNN-TD on the implementation of customer support solutions due to the impact of the COVID-19 epidemic.

Accordingly, the current acute respiratory infection due to the new strain of Corona virus (outbreak of COVID-19) is complicated, affecting production and business activities, thereby affecting the credit activities of the system. credit institutions, foreign bank branches (hereinafter referred to as credit institutions).
On February 14, the Government issued Resolution No. 11 / NQ-CP on the Government’s regular meeting of January 2020; in which, assigned “the State Bank to direct credit institutions to restructure loan repayment, exemption and reduction of interest rates, maintain the debt group, make new loans to stabilize production and business, support to remove. overcome difficulties for businesses and people due to the impact of the epidemic ”.
Following the Government’s direction, the State Bank of Vietnam requests credit institutions to proactively grasp the situation of production and business, review and assess the extent of damage and influence of borrowing customers. capital due to COVID-19 translation to restructure the debt repayment term, interest rate exemption and reduction, temporarily keep the debt group for customers with respect to debts affected by COVID-19 and have outstanding principal and / or the interest is due within the period between January 23, 2020 and March 31, 2020, until the State Bank of Vietnam issues a Circular guiding this matter; Providing new loans to customers according to regulations to stabilize production and business.
The content of the above-mentioned document clearly states that the rescheduling, exemption and reduction of loan interests, keeping the debt group must ensure that the requirements for debt repayment rescheduling comply with the proposal. Customer’s assessment and credit institution’s assessment of the extent of damage, impact, financial capability and repayment ability of the customer after the debt repayment rescheduling has been rescheduled.
In addition, credit institutions guide the implementation of this content uniformly throughout the system, in which specifies criteria for determining debts affected by COVID-19; contents of inspection, control and supervision of debts are restructured repayment, exemption and reduction of loan interest rates, and maintain the debt group to uniformly implement the whole system.
In addition, the document also stated that the credit institution is proactive, self-deciding and responsible for the rescheduling of loan repayment, exemption and reduction of interest, and temporarily keeping the debt group for affected customers. affected by COVID-19 epidemic as directed, ensuring strict, safe and right subjects; prevent and prevent the abuse of mechanisms to reflect credit quality discrepancies.
Credit institutions shall report to the State Bank of Vietnam (via Banking Inspection and Supervision Department, Department of Credit of Economic Industries) on the results of restructuring of repayment, exemption and reduction periods. loans, temporarily keeping the same group of loans, making new loans as prescribed to customers affected by COVID-19 epidemic on March 15 and March 31.