Increase in the number of refinancing extensions for credit institutions when lending VNA from July 22, 2024

Trần Thanh Rin

15:19, 23/07/2024

On July 22, 2024, the Governor of the State Bank of Vietnam issued Circular 42/2024/TT-NHNN amending Circular 04/2021/TT-NHNN concerning the refinancing regulations for credit institutions after the credit institutions have lent to Vietnam Airlines Corporation - JSC (VNA) and the restructuring of repayment periods, maintaining the debt group, and provisioning for risks for debts of Vietnam Airlines Corporation - JSC due to the impact of the Covid-19 pandemic.

Increase in the number of refinancing extensions for credit institutions when lending VNA from July 22, 2024

The refinancing loan for financial institutions after lending to VNA will be automatically extended 5 (five) times at the maturity date for the remaining principal balance of the refinancing loan; each extension period will equal the original refinancing term; the total refinancing and extension period will not exceed 6 years.

(Previously, the refinancing loan for financial institutions after lending to VNA was only automatically extended 2 (two) times at the maturity date for the remaining principal balance of the refinancing loan; each extension period equaled the original refinancing term; the total refinancing and extension period did not exceed 3 years.)

Thus, from July 22, 2024, the number of refinancing extensions for financial institutions lending to VNA will increase from 2 times to 5 times; concurrently, the total refinancing and extension period will increase from not exceeding 3 years to not exceeding 6 years.

It is noted that the loan to VNA is a financial institution loan as stipulated in clause 2, Article 3 of Decision 450/QD-TTg in 2021 regarding the State Bank of Vietnam's refinancing for financial institutions after lending to VNA according to the Resolutions of the National Assembly and the Government of Vietnam.

More details can be found in Circular 42/2024/TT-NHNN which takes effect in Vietnam from July 22, 2024.

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