Headlines 18/05/2020 08:18 SA

Answering 26 queries about debt rescheduling and other interest relief as a way to mitigate Covid-19's impacts

Quý Nguyễn

State Bank of Vietnam has just issued the 2020’s Official Dispatch No. 3339/NHNN-TTGSNH regarding responses and instructions about implementation of the Circular No. 01/2020/TT-NHNN dated March 13, 2020.

According to this document, 26 queries concerning debt rescheduling, interest deduction or exemption or debt non-restructuring for the purpose of supporting customers stricken with the Covid-19 pandemic as prescribed in the Circular No. 01 will be answered as follows:

- Does Circular No. 01 set limits on how often debt rescheduling, interest relief or debt non-restructuring measure is applied?

State Bank gives the following response:

Circular No. 01 does not set limits on how often debt rescheduling, interest relief or debt non-restructuring measure is applied.

Credit institutions or foreign bank branches that take these measures must strictly comply with regulations laid down in the Circular No. 01.

- Does Circular No. 01 apply to short-term, medium-term and long-term loans?

State Bank gives the following response:

This Circular does not impose any reservation to types of loans. If the outstanding debt amount fully meets requirements set out in the Circular No. 01, credit institutions will be entitled to debt rescheduling, interest deduction, exemption or debt non-regrouping measures, irrespective of short-term, medium-term or long-term loans.

For more details, please read the Official Dispatch No. 3339/NHNN-TTGSNH dated May 8, 2020.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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