Issuance of the Decision on handling risks of loans for customers experiencing difficulties due to the impact of Typhoon No. 3 in Vietnam

Tran Thanh Rin

10:16, 06/12/2024

On December 4, 2024, the Prime Minister of Vietnam issued Decision 1510/QD-TTg regarding the classification of assets, the level of risk provisioning, the method of risk provisioning, and the use of provisions for handling risks concerning debts of customers experiencing difficulties due to the impact and damages of Typhoon No. 3.

Issuance of the Decision on handling risks of loans for customers experiencing difficulties due to the impact of Typhoon No. 3 in Vietnam

In Decision 1510/QD-TTg, the Prime Minister of Vietnam has established regulations on asset classification to manage risks for the debts of customers facing difficulties due to the impact of Typhoon No. 3 as follows:

(1) Credit institutions and foreign bank branches are allowed to maintain the debt group for debts with outstanding principal and interest restructured according to the regulations of the State Bank on restructuring the repayment schedule for customers facing difficulties due to the impact and damage of Typhoon No. 3, maintaining the debt group as classified according to the State Bank's regulations on asset classifications in the operations of credit institutions and foreign bank branches as of the closest date before September 7, 2024, during the restructured repayment period.

(2) Debts that remain in the original debt group per (1) that are still within the restructured term will not require credit institutions and foreign bank branches to adjust or classify the debt into a group with higher risk levels according to the State Bank's regulations on asset classification in the operations of credit institutions and foreign bank branches.

(3) Debts remaining in the original debt group per (1) that are overdue as per the restructured term and not eligible for further restructuring or no longer have balances restructured as per the regulations of the State Bank on restructuring the repayment schedule for customers facing difficulties due to the impact and damage of Typhoon No. 3 will require credit institutions and foreign bank branches to classify the debt according to the State Bank's regulations on asset classifications in their operations.

More details can be found in Decision 1510/QD-TTg, effective from December 4, 2024.

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