September 10, 2021

New Circular of the State Bank of Vietnam officially allows debt restructuring period to be extended for another 6 months

 

On 7 September 2021, the Governor of the State Bank of Vietnam (SBV) issued Circular 14/2021/TT-NHNN (Circular 14) amending and supplementing Circular 01/2020/TT-NHNN (Circular 01) on rescheduling debt repayment, fee exemption and reduction, and keeping debt group to support customers affected by the Covid-19 epidemic. EuroCham has actively advocated for the amendment of Circular 01 and its successor, Circular 03/2021/TT-NHNN (Circular 03).

Lately, many EuroCham members have faced difficulties from a lack of short-term cash flow to pay expenses and maintain production activities. Circular 01 only applies to debt restructuring for loans incurred before 10 June 2020 from lending and financial leasing activities, making short-term loans almost eligible for restructuring. This puts great pressure on the short-term cash flow of enterprises, making it difficult for them to repay debts on time. This, in turn, makes it more difficult to borrow new loans to maintain operations.

To resolve this issue, Circular 14 has extended debt rescheduling for customers for a further six months. In particular, the SBV allows credit institutions and foreign bank branches to restructure debt incurred before 1 August 2021, instead of June 10, 2020; and debts with repayment obligations from 23 January 2020 to June 30, 2022, instead of to 31 December 2020. The restructuring of the repayment term for customers will be carried out until 30 June, 2022. In addition, the implementation of exemption and reduction of interest and fees for customers in accordance with Circular 01 as amended and supplemented by is implemented until 30 June 2022.

As explained by the SBV, the extension of the debt restructuring period for another 6 months is based on the Government's vaccination and Covid-19 control plan. In the first draft circulated for consultation in the SBV, the Banking Inspection and Supervision agency evaluated and proposed that the restructuring of the repayment term, the exemption or reduction of interest and fees, and keeping the debt group unchanged applied to the debt balance incurred during the period from 23 January 2020 to 30 June 2022 is appropriate to better support businesses and people affected by the Covid-19 epidemic. As a result, customers suffering from the pandemic will have an additional period of 6 months to resume their production and business.

More News

See all

May 24, 2024

EuroCham engages in the EU-Vietnam Research & Innovation Community Meeting

Read more

May 24, 2024

EuroCham participated in a consultation on Vietnam’s Direct Power Purchase Agreement Framework

Read more

May 24, 2024

Productive Dialogue at the Law on Standards and Technical regulations Consultation

Read more

May 24, 2024

EuroCham emphasises soft skills and sustainability training at a forum organised by the Ministry of Education and Training

Read more

May 24, 2024

[Sector Committee Spotlight] Transport and Logistics Sector Committee: driving Vietnam’s progress

Read more

May 22, 2024

[CORPORATE PARTNERS] BASF expands its biomass balance portfolio for selected chemical intermediates

Read more

May 22, 2024

[Work @ EuroCham] GEFE PROJECT OFFICER – based in Ho Chi Minh City

Read more

May 22, 2024

[Work @ EuroCham] CORPORATE RELATIONS cum MEMBERSHIP EXECUTIVE – based in Ho Chi Minh City

Read more

May 17, 2024

EuroCham convenes collaborative meeting with the EU Ambassador to Vietnam

Read more

May 17, 2024

Traditional Breakfast Commemorates Norwegian Constitution Day’s 210th Anniversary

Read more

May 17, 2024

EuroCham engages in Information Exchange Conference on Power Supply 2024

Read more

May 17, 2024

Welcoming New Members to the EuroCham Family!

Read more

May 17, 2024

EuroCham celebrates Europe Day in Ho Chi Minh City

Read more

May 17, 2024

EuroCham to further enhance Green Synergies with the Global Green Growth Institute (GGGI)

Read more

May 10, 2024

EuroCham congratulates VCCI on the successful launch of the 2023 Provincial Competitiveness Index (PCI) & Provincial Green Index (PGI)

Read more

May 10, 2024

EuroCham continues to engage in administrative reform dialogue with the Prime Minister’s Taskforce on Administrative Procedure Reform

Read more

May 10, 2024

EuroCham Vietnam celebrates European unity on Europe Day

Read more

May 03, 2024

[Sector Committee Spotlight] Nutritional Foods Group (NFG) Sector Committee

Read more

May 02, 2024

[CORPORATE PARTNERS] Nestlé Vietnam promotes initiatives on emission reduction

Read more

April 29, 2024

[Event Recap] EuroCham and PwC Vietnam’s business luncheon on “CSRD and Its Impacts on Businesses in Vietnam”

Read more

April 26, 2024

ASEAN Future Forum envisions sustainable, people-centered growth

Read more

April 26, 2024

EuroCham leaders meet with EU’s Asia-Oceania Working Party

Read more

April 26, 2024

EuroCham Vietnam Board Member Stuart Livesey joins VBF leadership for 2024

Read more

April 26, 2024

EuroCham Vietnam engages in discussions on rooftop solar energy and DPPA mechanism

Read more

April 26, 2024

[CORPORATE PARTNERS] Deutsches Haus Ho Chi Minh City achieves Second LEED Platinum Certifications for Operation and Maintenance as first Building in Vietnam and South East Asia

Read more

April 25, 2024

EuroCham delegation holds strategic meetings with national authorities

Read more

April 19, 2024

[CORPORATE PARTNERS] BASF to showcase sustainable additive solutions at CHINAPLAS 2024

Read more

April 19, 2024

[Event recap] EuroCham’s Tourism & Hospitality Sector Committee’s “Travel Together” event emphasizes collaboration for a sustainable tourism future

Read more

April 19, 2024

EuroCham’s Construction Sector Committee and the Ministry of Construction’s International Cooperation Department forge stronger ties

Read more

April 19, 2024

EuroCham meets with the Electricity Regulatory Authority of Vietnam to discuss renewable energy policies

Read more

Pour une expérience optimale, veuillez tenir votre mobile à la verticale !

Platinum Partners

Gold Premium Partners

Gold Partners

Silver Partners

Premium Service Partners