SBV Refinances for Employers to Pay Idle Wages at 0% Interest Rate per Annum

15:11, 10/07/2024

Recently, the Governor of the State Bank of Vietnam has issued Circular 05/2020/TT-NHNN, stipulating the refinancing to the Vietnam Bank for Social Policies according to Decision 15/2020/QD-TTg dated April 24, 2020, of the Prime Minister of the Government of Vietnam, stipulating the implementation of policies to support people facing difficulties due to the COVID-19 pandemic.

To be specific, in this Circular, the State Bank of Vietnam provides refinancing to the Vietnam Bank for Social Policies to lend to employers for wage payments during work stoppages. The total amount of refinancing is up to VND 16,000 billion (sixteen thousand billion Vietnamese dong). The refinancing interest rate is 0% per annum; the overdue refinancing interest rate is 0% per annum.

refinancing interest rate, 05/2020/TT-NHNN

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Circular 05/2020/TT-NHNN stipulates that the refinancing term is 364 days, starting from the day following the date when the State Bank disburses the refinancing to the Vietnam Bank for Social Policies.

It should be noted that this refinancing term is applied for each disbursement as prescribed in Clause 4, Article 6 of this Circular. The period for refinancing disbursement is from the date of signing the first debt undertaking until the end of July 31, 2020.

Furthermore, the State Bank provides refinancing without collateral to the Vietnam Bank for Social Policies.

For additional related provisions, see: Circular 05/2020/TT-NHNN, effective from May 7, 2020.

Thu Ba

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