The Circular prescribes that, if a debtor faces any difficulty in repaying loans, the credit institution may consider rescheduling debt repayment and granting a new loan, specifically including the following provisions:
- Rescheduling debt repayment and keeping the debt group unchanged are allowed based on the request of a customer and the evaluation of the customer’s debt repayment capability by the credit institution (this Circular adds the customer’s right to make a request);
- The rescheduled time must be in line with the business cycle of the customer but total maximum period must not exceed the original loan tenor as agreed upon in the credit contract (this Decree rules out the limit on the number of scheduling times);
- After the time when debt repayment is rescheduled and the debt group is kept unchanged, if the customer fails to repay the debt, the classification of debt will be carried out in accordance with applicable regulations adopted by the State Bank;
- A new loan may be granted for the business recovery purpose to the customer whose business projects and plans are judged feasible.
The Circular No. 25/2018/TT-NHNN enters into force on December 10, 2018.
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