To extend repayment period for debts affected by COVID-19 in Vietnam

To extend repayment period for debts affected by COVID-19 in Vietnam (Internet image)

According to Resolution 129/NQ-CP, in order to support businesses and people in difficult times due to the impact of the Covid epidemic, the Government has requested the State Bank of Vietnam to continue to operate monetary policy in the direction of expanding the time limit for debts affected by COVID-19. To be specific:

- State Bank of Vietnam shall continue to implement monetary policies in a flexible and proactive manner and cooperate with fiscal policies and other policies harmoniously to stimulate the economy and control inflation, stabilizing macroeconomy.

- Urgently amend Circular 01/2020/TT-NHNN before September 30, 2020 and relevant regulations with an aim to extending repayment period for debts affected by COVID-19 and eligible for restructuring/debt classification retention as appropriate to the pandemic’s progress and in support of citizens and enterprises.

- Urgently submit draft decision on pilot use of telecoms accounts for low value goods and services payment (mobile money) to the Prime Minister; complete and submit proposal for formulation of a Decree on regulatory sandboxes for fintech in the banking sector within October 2020 to the Government.

In addition to monetary policy, the Government also requests the Ministry of Finance to implement policies on taxes and fees. Specifically:

- The Ministry of Finance continues to review and propose tax and fee policies to support businesses facing difficulties due to the impact of the Covid-19 pandemic;

- Promote administrative procedure reform, facilitate people and businesses to pay taxes;

- Cooperate with ministries, branches and localities to strengthen the implementation of measures to combat revenue loss, transfer pricing, trade fraud, and review and collect tax arrears;

- Urgently submit to the Government for consideration and promulgation a draft Decree amending Decree 126/2017/ND-CP and Decree 32/2018/ND-CP to accelerate the equitization process of state-owned enterprises and divestment of state capital in enterprises;

- Agree with the State Bank of Vietnam on amending and supplementing Circular 01/2020/TT-NHNN for timely promulgation, providing practical support for businesses and borrowers affected by the Covid-19 pandemic in accordance with the direction of the Prime Minister.

More details can be found in Resolution 129/NQ-CP, which comes into force from September 11, 2020.

Thuy Tram

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