Hanoi, Vietnam: Conditions for Considering approval of credit overextensions

Conditions for Considering approval of credit overextensions in Vietnam

Conditions for considering approval of credit overextensions ivare as follows:

- Borrowing customers, projects, and plans proposed for credit granting beyond limits must meet the following conditions:

+ Customers meet the credit granting conditions as prescribed by law, have no bad debts at credit institutions for 03 consecutive years prior to the time of proposing credit granting beyond limits, and have a debt-to-equity ratio on the customer's financial statement at the closest time to the time of proposing credit granting beyond limits not exceeding three times;

+ Customers need capital to implement projects and production-business plans to fulfill the country's socio-economic tasks under one of the following cases:

Implement projects and plans with significant socio-economic importance and urgency to fulfill the tasks of socio-economic development, serving the essential needs of the people's lives in sectors and fields: electricity, coal, oil and gas, petroleum, transportation, public transport, and other areas as directed by the Government of Vietnam, Prime Minister of the Government of Vietnam from time to time;

Implement investment programs and projects decided upon by the National Assembly or the Prime Minister of the Government of Vietnam;

Invest in priority and encouraged sectors according to the Resolution of the National Assembly and the Government of Vietnam on socio-economic development from time to time.

+ Projects and plans proposed for credit granting beyond limits have been appraised and evaluated as feasible by credit institutions, the customers have the ability to repay and the credit granting decision; comply with current regulations on investment and construction, align with the planning, production-business plans, and have been approved by competent authorities or granted an Investment Registration Certificate.

See details in Decision 09/2024/QD-TTg effective from July 01, 2024

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