Article table of contents
Debt restructuring, interest exemption and reduction until June 30, 2022 for customers affected by Covid-19 (Artwork)
According to this Circuclar, credit institutions and foreign branch banks restructure the repayment term for the outstanding balance of principal and/or interest of a debt (including debts under the scope of Decree 55/2015/ND-CP) when the following conditions are fully satisfied:
1. Incurred before August 1, 2021 from lending and financial leasing activities.
2. Having an obligation to repay principal and/or interest in the period from January 23, 2020 to June 30, 2022.
3. Debt balance of a debt whose repayment term is restructured in one of the following cases:
3.1 The unpaid debt is undue or up to 10 days overdue according to the loan/finance lease agreement, except for the case specified in 3.2, 3.3, 3.4;
3.2 The debt is overdue (except for the cases in Point a of this Clause) during the period from 23/01/2020 to the 16th day from the effective date of this Circular;
3.3 The debt arises from January 23, 2020 to before June 10, 2020 and is overdue before May 17, 2021;
3.4 The debt arises from June 10, 2020 to before August 1, 2021 and is overdue from July 17, 2021 to before September 7, 2021.
4. Being assessed by a credit institution, foreign branch bank's borrower's inability to repay the loan principal and/or interest on time under the contract or agreement due to a decrease in revenue and income due to the influence of Covid-19 pandemic.
5. Borrower has requested to be restructured the repayment term and the credit institution, foreign branch bank evaluates the customer's ability to fully repay the principal and/or interest according to the agreed repayment term.
6. Credit institutions and foreign branch banks fail to restructure debt repayment term for debts in violation of law provisions.
7. The time for debt rescheduling (including debt extension) is suitable to the extent of the impact of the Covid-19 epidemic on customers and must not exceed 12 months from the date of credit institutions, foreign bank's branch shall restructure the repayment term or from the due date of each debt balance the repayment term shall be restructured.
8. The restructuring of the repayment term for customers will be carried out until June 30, 2022.
Regarding exemption and reduction of interest and fees, Circular 14/2021 also amends to regulations on exemption and reduction of interest and fees. Specifically, credit institutions and foreign branch banks decide to exempt or reduce interest and fees under internal regulations for outstanding balances of debts arising before August 1, 2021 from credit granting activities (except for the purchase and investment of corporate bonds) with the obligation to repay the principal and/or interest is due between January 23, 2020 and June 30, 2022 and the borrower does not being able to repay the loan principal and/or interest on time according to the contract or agreement due to a decrease in revenue and income due to the impact of the COVID-19 pandemic.
In addition, the implementation of exemption and reduction of interest and fees for borrowers in accordance with the provisions of Circular 01/2020/TT-NHNN (amended and supplemented by Circular 03/2021/TT-NHNN) is implemented until June 30, 2022.
Circular 14/2021/TT-NHNN of Vietnam takes effect from September 7, 2021.
Bao Ngoc
