Legal Counselling

Vietnam’s new regulation on applications for debt charge-off

21:23, 08/11/2018

The State Bank of Vietnam issued Circular No. 25/2018/TT-NHNN amending a number of Articles of the Circular No. 10/2015/TT-NHNN guiding the implementation of a number of contents of the Government’s Decree No. 55/2015/ND-CP on the credit policy for agricultural and rural development.

According to Circular No. 25/2018/TT-NHNN of the State Bank of Vietnam, applications for debt charge-off shall comply with Clause 3 Article 12 of Decree No. 55/2015/ND-CP, amended by Clause 6 Article 1 of Decree No. 116/2018/ND-CP of Vietnam’s Government. Specifically, the application consists of:

- A written notification of the large-scale natural disaster or epidemic prepared by provincial People’s Committee in case natural disasters or epidemics break out;

- An application form for debt charge-off prepared by the customer;

- Documents proving the customer has an outstanding loan, including a copy of loan agreement and loan note;

- A record on customer’s loss of loans and loan-derived assets which specifies the rate of loss due to the large-scale natural disaster or epidemic, force majeure event or other causes not by faults of the customer and is signed by the credit institution, the customer and competent authority;

- A report on appraisal of loss, solvency of the customer, business plan, debt repayment plan after charge-off period and proposal of debt charge-off period made by the branch of credit institution and people's credit funds.

View the responsibilities of credit institutions at Circular No. 25/2018/TT-NHNN of the State Bank of Vietnam, effective from December 10, 2018.

- Thanh Lam -

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