Title: 05 Levels of Risk for Refinanced Loans

04:43, 11/07/2024

This is a notable content in Circular 37/2018/TT-NHNN amending and supplementing Circular 39/2013/TT-NHNN stipulating the identification, provisioning, management, and use of risk provisions of the State Bank of Vietnam.

According to the new regulations, refinancing loans are classified into five categories based on increasing risk levels. To be specific:

Group 1:

- Refinancing loans that are on time;- Refinancing loans without specified repayment terms arising within one year;

Group 2:

- Refinancing loans that are overdue for less than one year;- Refinancing loans without specified repayment terms arising from one year to less than three years;- Refinancing loans that are extended for the first time and still on time;

Group 3:

- Refinancing loans that are overdue from one year to less than two years;- Refinancing loans without specified repayment terms arising from three years to less than five years;- Refinancing loans that are extended for the second time and still on time;- Refinancing loans that are extended for the first time and less than one year overdue;

Group 4:

- Refinancing loans that are overdue from two years to less than three years;- Refinancing loans without specified repayment terms arising from five years to less than ten years;- Refinancing loans that are extended for the third time and still on time;- Refinancing loans that are extended for the first time and overdue from one year to less than three years;- Refinancing loans that are extended the second time and overdue for less than one year;

Group 5:

- Refinancing loans that are overdue for three years or more;- Refinancing loans without specified repayment terms arising from ten years or more;- Refinancing loans that remain extended;- Frozen debts.

See the full text of the regulation at Circular 37/2018/TT-NHNN effective from February 15, 2019.

- Thanh Lam -

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