Carrying out debt rescheduling for clients having difficulties

This is one of the important contents prescribed in the Circular No, 02/2023/TT-NHNN of the State Bank of Vietnam on credit institutions and foreign bank branches carrying out debt rescheduling and maintaining classified loan groups in order to support clients in difficulties.

Accordingly, from April 24, 2023, to the end  of June 30, 2024, credit institutions and foreign bank branches carrying out debt rescheduling, and maintaining classified loan groups in order to support clients who are facing difficulties in production and business operations, as well as other clients facing difficulties in repaying their consumer debts for loan principals and/or interests (including also debts regulated by the Government’s Decree No. 55/2015/ND-CP) on the bases that:

- On the basis of the client's requests;

- Financial capacity of credit institutions and foreign bank branches;

- At the same time, all the following conditions are fully met:

• Loan principals arise before April 24, 2023, and from lending and financial leasing activities.
• Giving rise to obligations to repay loan principals and/or interests from April 24, 2023, to the end of June 30, 2024.
• The debit balance rescheduled is not due or falls overdue for up to 10 (ten) days from April 24, 2023, under a contract or an agreement.
• Being of clients that are unable to make due payment of their loan principals and/or interests under contracts or agreements due to loss of their revenues or incomes compared to that in the plan for payment of loan principals and/or interests under contracts or agreements, as evaluated by credit institutions or foreign bank branches.
• Clients are evaluated by credit institutions or foreign bank branches of the capability to pay off loan principals and/or interests on the rescheduled due date.
• Credit institutions and foreign bank branches refuse to reschedule debts in violation of the law.
• The rescheduled period (also in case of extension of debt payment deadlines) shall be determined according to the client’s difficulties, and must not exceed 12 months from the due date of the debit balance eligible for rescheduling.

The Circular No. 02/2023/TT-NHNN takes effect on April 24, 2023.