Which Subjects Will Be Granted Loan Restructuring by the Credit Guarantee Fund for Small and Medium Enterprises? What are the Conditions for Loan Restructuring Consideration?
Which entities are eligible for debt extension from the Credit Guarantee Fund for Small and Medium Enterprises?
Based on Clause 1, Article 11 of Circular 57/2019/TT-BTC, it is stipulated as follows:
Debt Extension
1. Eligible entities for consideration: Customers facing risks due to one of the circumstances stipulated in Clause 1, Clause 3, and Clause 4, Article 7 of this Circular.
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Referring to Clause 1, Clause 3, and Clause 4, Article 7 of Circular 57/2019/TT-BTC, it is stipulated as follows:
Circumstances for risk handling consideration
1. Customers suffering financial or asset damages due to natural disasters, crop failures, epidemics, fires, political risks, wars, affecting production and business activities, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
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3. State policy changes affecting the production and business activities of customers, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
4. Customers facing other objective risks directly affecting production and business activities, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
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Thus, the following entities will be eligible for debt extension from the Credit Guarantee Fund for Small and Medium Enterprises:
- Customers suffering financial or asset damages due to natural disasters, crop failures, epidemics, fires, political risks, wars, affecting production and business activities, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
- State policy changes affecting the production and business activities of customers, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
- Customers facing other objective risks directly affecting production and business activities, leading to customers being unable to repay debts (principal, interest) on time according to the mandatory debt agreement.
Which entities will be eligible for debt extension from the Credit Guarantee Fund for Small and Medium Enterprises? What are the conditions for debt extension consideration?
What are the conditions for the Credit Guarantee Fund for Small and Medium Enterprises to consider debt extension?
Based on Clause 2, Article 11 of Circular 57/2019/TT-BTC, it is stipulated as follows:
Debt Extension
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2. Conditions for consideration: Customers will be considered for debt extension when meeting the following conditions:
a) Belonging to the entities stipulated in Clause 1 of this Article;
b) Facing difficulties in production and business activities leading to inability to repay debts (principal, interest) on time according to the mandatory debt agreement;
c) Having feasible production and business plans and debt repayment plans after the debt extension;
d) The customer’s debt has been rescheduled or has not been rescheduled but the Credit Guarantee Fund assesses and evaluates that even if rescheduling measures are applied, the customer still cannot repay the debt (principal, interest) to the Credit Guarantee Fund according to the mandatory debt agreement.
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Thus, the conditions for the Credit Guarantee Fund for Small and Medium Enterprises to consider debt extension include:
- Belonging to the entities eligible for debt extension from the Credit Guarantee Fund for Small and Medium Enterprises;
- Facing difficulties in production and business activities leading to inability to repay debts (principal, interest) on time according to the mandatory debt agreement;
- Having feasible production and business plans and debt repayment plans after the debt extension;
- The customer’s debt has been rescheduled or has not been rescheduled but the Credit Guarantee Fund assesses and evaluates that even if rescheduling measures are applied, the customer still cannot repay the debt (principal, interest) to the Credit Guarantee Fund according to the mandatory debt agreement.
What principles must the handling of risks by the Credit Guarantee Fund adhere to?
Based on Article 4 of Circular 57/2019/TT-BTC, it is stipulated as follows:
Principles of risk handling by the Credit Guarantee Fund
1. The handling of risks by the Credit Guarantee Fund must comply with the principles stipulated in Clause 1, Article 37 of Decree No. 34/2018/ND-CP of the Government of Vietnam.
Referring to Clause 1, Article 37 of Decree 34/2018/ND-CP of the Government of Vietnam, it states:
Risk handling
1. Principles of risk handling: The handling of risks by the Credit Guarantee Fund must ensure the following principles:
a) Strict compliance with legal regulations;
b) Minimizing losses to the state and associating responsibility of the Credit Guarantee Fund, the guarantor, the guaranteed party, and relevant agencies in the guarantee, recovery of replacement debt payments as stipulated in this Decree and relevant laws.
Thus, the handling of risks by the Credit Guarantee Fund must ensure adherence to the above principles.
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