Four Principles for Handling Debts of Agriculture and Forestry Companies

11:42, 10/07/2024

Circular 11/2015/TT-NHNN provides guidance on the handling of loans of agricultural and forestry companies at credit institutions during the reorganization and renewal under Decree 118/2014/ND-CP, issued by the Governor of the State Bank on August 20, 2015.

Illustrative image (Source: Internet)

According to Circular 11/2015/TT-NHNN guiding the handling of loan debts, including: restructuring repayment terms, exemption, reduction of loan interest, prioritizing principal debt collection first, interest collection later, selling debts, transferring debts, converting loans into capital contribution, shares and other measures as stipulated in this Circular and other related legal provisions.

Principles for handling loan debts of agro-forestry companies at credit institutions during restructuring and innovation are as follows:

1. Loans at credit institutions of agro-forestry companies must be preserved during the restructuring and innovation process as stipulated in Decree 118/2014/ND-CP.

2. Before implementing restructuring and innovation according to the Scheme approved by the competent authority, the agro-forestry company must mobilize lawful funds to pay off the loan debts to credit institutions or agree with credit institutions on the plan to handle the loan debts.

3. The time to handle the loan debts is at the point of conversion or at another time after the point of conversion as agreed between the credit institution and the agro-forestry company.

4. Credit institutions shall handle loan debts of agro-forestry companies according to the provisions of this Circular and other related legal provisions.

For details, see Circular 11/2015/TT-NHNN, effective from October 5, 2015.

Le Hai

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