Official Dispatch No. 2506/NHNN-CSTT dated April 24, 2012 of the State Bank of Vietnam on solutions on credit activities

To:       Credit institutions

Foreign bank branches

In order to implement the Resolution No. 01/NQ-CP dated January 03, 2012 of the Government on some main solutions to realize the socio-economic development plan and state budgetingfor 2012, the Banking system actively implement synchronous measures on interest and credit rates to support enterprises and households access to the bank credit loan to serve for their prodution and business. In order to continue taking effective measures of credit extension with the aim of facilitating enterprises and households to gradually restore and maintain production and  business, the State Bank of Vietnam requires  credit institutions and foreign bank branches (hereafter called as credit institutions) to performs the following tasks:

1. To actively coordinate with their borrowers in  assessment of repayment capacity of the borrowers in order to cope with difficulties in repaying the debts in accordance with the cycle of production, business, the timeline of capital recovery of the projects, loan utilizing plan, and the repayment capacity of borrowers. Based on assessment of repayment capacity of the borrowers and their financial capacity, credit institutions reschedule loans for those borrowers who are unable to repay debts on due date as agreed in the credit contracts as stipulated in Decision No. 783/2005/QD-NHNN dated May 31, 2005:

a. The borrowers are unable to repay the principal or interest of their loans within the loan term as agreed in the credit contract and are evaluated by credit institutions to have good debt repayment capacity in the following periods. Credit institutions consider adjusting the schedule of debt repayment (the principal and/or interest of loans).

b. The borrowers are unable to repay the principal or interest of their loans within the loan term as agreed in the credit contract and are evaluated by credit institutions to have good debt repayment capacity in a fixed period after the loan term. Credit institutions consider extending debt repayment period for the borrowers in accordance with the repayment source of customers.

2. To perform the classification of rescheduled loans as stipulated in Decision No. 780/QD-NHNN dated April 23, 2012 on classification of rescheduled loans.

3. Basing on credit institutions’  financial capability and customer policies, credit institutions consider the possibility of lowering lending  interest rates of credit contracts to the level of current lending interest rates, especially for agricultural and rural development, goods manufacturing for export, supporting industries, and small and medium enterprises,  labor-intensive firms.

4. To consider the possibility of exemption or reduction of interest rates for customers with asset losses leading to financial problem in accordance with the Regulations on lending by credit institutions to customers issued together with Decision No.1627/2001/QD-NHNN dated December 31, 2001 and on the basis of credit institutions’  financial capacity and their regulations on exemption and reduction of interest rates.

In the process of implementation, credit institutions must promtly report to the State Bank of Vietnam any  arising problems for guidance.

FOR GOVERNOR OF THE STATE BANK

DEPUTY GOVERNOR

NGUYEN DONG TIEN