5 Cases in which Small and Medium Enterprises are Considered for Debt Risk Handling

Le Trang

20:41, 10/07/2024

Circular 57/2019/TT-BTC guiding the risk management mechanism of the Credit Guarantee Fund for small and medium enterprises was issued on August 26, 2019.

Small and medium-sized enterprises are considered for risk management in the following 05 cases:

- Suffer financial and asset losses due to natural disasters, crop failures, epidemics, fires, etc., affecting business operations, leading to the inability to repay debts (principal, interest) on time according to the mandatory debt acceptance contract signed;- Declared bankrupt according to current legal regulations;- State policy changes affect business operations leading to the inability to repay debts (principal, interest) on time according to the mandatory debt acceptance contract signed;- Encounter risks due to other objective reasons directly affecting business operations, leading to the inability to repay debts (principal, interest) on time according to the mandatory debt acceptance contract signed;- Have bad debts (from group 3 to group 5) according to the debt classification results as stipulated in Clause 1, Article 36 of Decree 34/2018/ND-CP.

More details can be found in Circular 57/2019/TT-BTC effective from October 15, 2019.

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