SBV published Circular 03/2021/TT-NHNN that amends and supplements a number of articles of the circular (No. 01/2020 / TT-NHNN) on regulations on the rescheduling the repayment term, interest rate exemption and reduction, and debt classification, to support customers affected by COVID-19 pandemic. The published Circular takes effect on May 17, 2021.
The following are the key measures presented in Circular No. 03/2021/TT-NHNN:
- Debt rescheduling—Article 4 of the Circular stipulates that credit institutions and foreign bank branches shall reschedule debt payment terms for outstanding loans that fully satisfy certain conditions mentioned in the Circular. The credit institutions and foreign bank branches shall reschedule debt payment terms for outstanding loans arising before June 10, 2020, where the obligation to repay the principal and/or interest arises from January 23, 2020 to December 31, 2021.
- Exemption and reduction of interest and fees—Article 5 of the Circular stipulates that credit institutions and foreign banks branches will decide on exempting or reducing their interest and fees according to the internal regulations for outstanding loans arising before June 10, 2020 from credit extension operations (except for activities of buying and investing in corporate bonds).
- Maintenance of debt classifications—Article 6 of the Circular stipulates that credit institutions and foreign bank branches are entitled to maintain classified debt groups in accordance with the provisions of SBV, with regard to the debt balances subject to loan repayment rescheduling, interest and fee waiver, and reduction as prescribed in the Circular.
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Effective Date: May 17, 2021
Keywords: Asia Pacific, Vietnam, Banking, COVID-19, Loan Moratorium, Credit Risk, Loan Repayment, SBV
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