Vietnam: Borrowing customers that have not incurred bad debts for 03 years shall be offered credit overextensions

According to Decision No. 13/2018/QĐ-TTg of the Prime Minister of Vietnam, borrowing customs, business projects or plans shall be offered credit overextensions provided they meet the following requirements:

- Borrowing customers strictly meets lawful credit extension requirements, have not incurred bad debts for 03 years preceding the year of submission of their applications for credit overextensions, have the ratio in which the debt owed is not three times more than the owner’s equity according to their quarterly or annual financial statements;

- Borrowing customers wish to borrow fund to implement business projects or plans with the aim of performing socio-economic development tasks under one of the following circumstances:

+ They implement business projects or plans of socio-economic significance and urgent ones in order to perform socio-economic development duties and meet the basic human needs in electricity, coal, oil and gas, petroleum, traffic, public transportation;

+ They implement investment programs and projects for which investment policies are decided by the National Assembly and the Prime Minister.

+ They invest in sectors which are prioritized and encouraged under Resolutions of the National Assembly and the Government on socio-economic development over periods of time.

- Business projects or plans in need of credit overextensions have already undergone the credit institution’s assessment which ensures that they are feasible and borrowing customers remain solvent, and suggests that the credit extension decision should be made.

View more details at Decision No. 13/2018/QĐ-TTg of the Prime Minister of Vietnam, effective from May 01, 2018.

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