Restructuring debt for customers affected by Typhoon No. 3 (Yagi) until the end of 2025

Restructuring debt for customers affected by Typhoon No. 3 (Yagi) until the end of 2025

Pursuant to Article 4 of Circular 53/2024/TT-NHNN regulating the restructuring of debt repayment terms.

Credit institutions and branches of foreign banks may consider and decide to restructure the repayment terms for outstanding principal and interest of debts based on the customer's request, the financial capability of the credit institution or branch of a foreign bank, and compliance with the following stipulations:

- Customers of credit institutions and foreign bank branches in provinces and centrally-run cities: Ha Giang, Cao Bang, Lang Son, Bac Giang, Phu Tho, Thai Nguyen, Bac Kan, Tuyen Quang, Lao Cai, Yen Bai, Lai Chau, Son La, Dien Bien, Hoa Binh, Hanoi, Hai Phong, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, Thai Binh, Nam Dinh, Ha Nam, Ninh Binh, Quang Ninh, Thanh Hoa (hereinafter referred to as the 26 provinces and cities) facing difficulties due to the impact and damage of Typhoon No. 3, including:

+ Individual customers residing, working, having business production facilities, or conducting investment, construction, or business activities in the 26 provinces and cities;

+ Organizational customers (excluding customers who are credit institutions and foreign bank branches) with headquarters, branches, representative offices, or business production facilities or conducting investment, construction, or business activities in the 26 provinces and cities,

- Outstanding principal balance incurred before September 7, 2024, and from lending and financial leasing activities.

- Incurrence of principal and interest repayment obligations from September 7, 2024, to the end of December 31, 2025.

- The balance of the debt that is restructured in terms of repayment remains on time or overdue for up to 10 (ten) days from the due date agreed upon for repayment. Credit institutions or branches of foreign banks may restructure the repayment terms for debt balances that are overdue by more than 10 (ten) days and overdue during the period from September 7, 2024, to December 16, 2024, when initially restructuring the repayment terms as stipulated in Circular 53/2024/TT-NHNN.

- Customers are assessed by the credit institution or branch of a foreign bank to be experiencing difficulties and unable to repay principal and interest on time as per the agreed contract due to the impact and damage of Typhoon No. 3 and have the capability to fully repay principal and interest per the restructured repayment terms.

- Credit institutions and branches of foreign banks do not restructure the repayment terms for debts that violate legal regulations.

- The consideration for restructuring repayment terms is conducted from December 4, 2024, to the end of December 31, 2025, with no limit on the number of times repayment terms can be restructured.

- The final repayment date of the restructured debt balance is determined based on the customer's level of difficulty but does not exceed December 31, 2027.

Circular 53/2024/TT-NHNN is effective from December 4, 2024.

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