Vietnam: Conversion of refinancing loans into special loans

10:50, 05/02/2018

On January 26, 2018, the State Bank of Vietnam issued Circular No. 01/2018/TT-NHNN, which specifies the conversion of refinancing loans into special loans.

According to Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam (SBV), since the SBV places the credit institution under special control, refinancing loans granted to that credit institution may be converted into special loans as follows:

- If the refinancing loan is not due, the principal and interest of such refinancing loan shall be converted into special loan; the due date and interest rate of the special loan shall be those of the refinancing loan;

- If the refinancing loan is overdue, the overdue principal and the outstanding balance of late payment interest of such refinancing loan shall be converted into the special loan; the interest rate on the overdue principal of the special loan shall be that of the refinancing loan.

Concurrently, Circular No. 01/2018/TT-NHNN also stipulates that the conversion of refinancing loans into special loans is specified in the Decision of the SBV placing the credit institution under special control.

View details at Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam, effective from January 29, 2018.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

13 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn