Vietnam: Deferral of exemption and reduction of interest for borrowers affected by Covid-19 until June 30, 2022

Bao Ngoc

15:44, 09/09/2021

On September 7, 2021, the Governor of the State Bank of Vietnam promulgated Circular 14/2021/TT-NHNN edit Circular 01/2020/TT-NHNN on debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-19 pandemic.

According to this Resolution, credit institutions, and foreign branch banks decide to exempt or reduce interest and/or outstanding debts of the debts that arise before 01/8/2021 from extend credit (except purchases of corporate bonds)

- Obligation to pay principal and/or interest due for payment in the period from January 23, 2020 to June 30, 2022; and

- Borrowers are unable to repay on time the principal and/or interest according to the contract or agreement due to the decrease in revenue and income due to the impact of the Covid-19 epidemic.

The implementation of exemption and reduction of interest and fees for borrowers will be carried out until June 30, 2022.

(Previously, in Circular 03/2021/TT-NHNN of Vietnam stipulating the exemption and reduction of interest and fees for borrowers until December 31, 2021).

Circular 14/2021/TT-NHNN takes effect from September 7, 2021.

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