State Bank of Vietnam: 03 cases of conversion of refinancing loans into special loans

Bao Ngoc

10:40, 14/07/2021

On July 06 2021, the State Bank of Vietnam (SBV) issued Circular No. 08/2021/TT-NHNN prescribing grant of special loans to credit institutions placed under special control.

According to Circular No. 08/2021/TT-NHNN, from the day on which a credit institution is placed under special control by SBV, the refinancing loan granted to that credit institution shall be converted into a special loan as follows:

- If the refinancing loan is not yet due, the outstanding principal and interest of the refinancing loan shall be converted into those of the special loan.

The maturity date and interest rate of the special loan shall be those of the refinancing loan.

- In case of loan extension, the interest rate on the extended special loan shall be equal to the refinancing rate announced by SBV in each period at the time the special loan is extended (no provision).

- If the refinancing loan is overdue, the overdue principal and delayed outstanding interests of the refinancing loan shall be converted into those of the special loan, the interest rate charged on the overdue principal of the special loan shall be that charged on the overdue principal of the refinancing loan.

Circular No. 08/2021/TT-NHNN takes effect from October 27 2021 and replaces the Circular No. 01/2018/TT-NHNN.

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