Amendments to the regulations on debt rescheduling in Vietnam

Amendments to the regulations on debt rescheduling in Vietnam

According to Circular 06/2024/TT-NHNN dated 18/6/2024, amending Circular 02/2023/TT-NHNN, credit institutions and foreign bank branches may consider and decide on debt rescheduling for principals and/or interest of loans (including loans under the scope of Decree 55/2015/ND-CP (as amended and supplemented)) based on the customer's request, the financial capacity of the credit institution or foreign bank branch, and compliance with the following regulations:

(1) Principal balances arise before the effective date of this Circular and from lending or financial leasing activities.

(2) Arise obligations to repay the principal and/or interest within the period from April 24, 2023, to December 31, 2024.

(Previously, the regulation required the repayment obligations to arise within the period from April 24, 2023, to June 30, 2024)

(3) The balance of the rescheduled debt is current or past due up to 10 (ten) days from the payment due date or contractual/agreement term.

(4) Credit institutions or foreign bank branches assess that borrowers are unable to repay the principal and/or interest on time per the contract or agreement due to declining revenue or income compared to the revenue or income as per the debt repayment plan under the contract or agreement.

(5) borrowers are assessed by credit institutions or foreign bank branches to have the ability to fully repay the principal and/or interest under the rescheduled debt repayment schedule.

(6) Credit institutions or foreign bank branches do not restructure the debt repayment term for loans in violation of legal regulations.

(7) The debt rescheduling period (including debt extension) is determined according to the customer's difficulty level and does not exceed 12 months from the due date of the rescheduled debt balance.

(8) Debt rescheduling for borrowers as per Circular 02/2023/TT-NHNN will be carried out from April 24, 2023, to December 31, 2024.

(Previously, the regulation stated that debt rescheduling for borrowers as per Circular 02/2023/TT-NHNN was to be carried out from April 24, 2023, to June 30, 2024)

Circular 06/2024/TT-NHNN becomes effective on June 18, 2024.

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