SBV Amends Measures to Support Recovery from COVID-19 pandemic
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.
Related Links (in Vietnamese)
Effective Date: May 17, 2021
Keywords: Asia Pacific, Vietnam, Banking, COVID-19, Loan Moratorium, Credit Risk, Loan Repayment, SBV
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
OCC Proposes to Revise Stress Test Report and Instructions for BanksRelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
