Borrowers from Banks to Be Exempted from, Reduced Interest and Fees Due to Covid-19 Pandemic

Nguyen Trinh

13:29, 10/07/2024

This is the prominent content stipulated in Circular 01/2020/TT-NHNN which regulates the restructuring of debt repayment terms, interest and fee waivers or reductions, and maintaining the debt group classifications to support customers affected by the Covid-19 pandemic by credit institutions and foreign bank branches.

Circular 01 requires credit institutions to implement various preferential policies for customers affected by the Covid-19 pandemic. Specifically, these policies include:

- Restructuring debt payment terms: Restructured debt refers to the outstanding principal and/or interest that meets the following conditions:

- Arising from lending or financial leasing activities;- Incurring principal and/or interest repayment obligations from January 23, 2020, to three months after the official announcement of the end of the Covid-19 pandemic;- Customers are unable to repay on time due to reduced revenue or income resulting from Covid-19.

- Waiving or reducing interest and fees when payments are due from January 23, 2020, to three months after the official announcement of the end of the pandemic;- Maintaining the initially classified loan groups.

For details, see Circular 01/2020/TT-NHNN, effective from March 13, 2020.

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