04 Cases of Repayment of Loans for Funding to Support People Facing Difficulties Due to Covid-19

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According to Circular 05/2020/TT-NHNN, when a refinancing loan aimed at implementing policies to support individuals facing difficulties due to the COVID-19 pandemic matures, the Social Policy Bank must repay the principal of the refinancing loan disbursed according to Clause 4, Article 6 of this Circular to the State Bank from repayments by employers borrowing funds according to Decision 15/2020/QD-TTg (hereinafter referred to as the employer).

However, this Circular also notes 4 cases:

- In the case that by July 31, 2020, the Social Policy Bank has not fully disbursed the received amount according to Clause 4, Article 6 of this Circular, by no later than August 15, 2020, the Social Policy Bank must return to the State Bank the undisbursed amount in the order of the earliest remaining debt contracts.

- In the case that the refinancing loan matures and the Social Policy Bank has not fully repaid the debt, the State Bank will monitor the refinancing loan as overdue according to the regulations of the State Bank on methods of calculating and accounting for interest collection and payment in deposit and lending activities between the State Bank and credit institutions.

- In the case that repayments from employers arise, within the first 5 working days of the following month, the Social Policy Bank must use all employer repayments of the month to repay the refinancing loan in the order of the earliest remaining debt contracts (including cases where the refinancing loan has transitioned to overdue monitoring, and refinancing loans that have not yet matured), except for cases where the employer's loan has been written off according to Clause 4, Article 17 of Decision 15/2020/QD-TTg.

- In case it is discovered that the Social Policy Bank has received repayments from employers but has not repaid the refinancing loan according to Clause 1 and Clause 4, Article 7 and/or the Social Policy Bank has not repaid the refinancing loan according to Clause 2 of this Article, the State Bank will apply the following measures:

+ Apply an interest rate equal to the overdue lending interest rate of the Social Policy Bank for employers as regulated in Decision 15/2020/QD-TTg (12% per year) for the incorrectly repaid amount, from the day immediately following the due date according to this Circular until the Social Policy Bank fully repays the amount;

+ Deduct from the Social Policy Bank's deposit account at the State Bank to recover the refinancing loan amount that the Social Policy Bank has not correctly repaid and the interest stipulated at point a of this Clause, within 5 working days from the date the State Bank's transaction department receives the violation notice as per Point b, Clause 2, and Point b, Clause 5, Article 9 of this Circular.

More details can be found in Circular 05/2020/TT-NHNN effective from May 7, 2020.

Thu Ba

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