Headlines 10/04/2021 17:26 CH

Customers affected by Covid-19 are entitled to loan interest reduction

Trung Tài

State Bank of Vietnam promulgates the Circular No. 03/2021/TT-NHNN amending the Circular No. 01/2020/TT-NHNN concerning debt rescheduling, interest reduction or exemption or debt non-restructuring for the purpose of supporting customers stricken with Covid-19.

According to this document, below are the regulations on interest exemption or reduction granted to customers affected by Covid-19:

- Credit institutions and foreign bank branches may, at their discretion, decide to grant exemption or reduction of interest or fees prescribed in their internal rules and regulations with respect to outstanding debts incurred from credit facilities before June 10, 2020 (except corporate bond purchase and investment) if:

+ Obligations to repay principal and/or interest are due during the period from January 23, 2020 to December 31, 2021;  

+ Customers are incapable of repaying principal and/or interest debts by payment due dates under terms and conditions of lending contracts or agreements due to decreases in their revenue and income caused by the Covid-19 outbreak.

- Interest and fee exemption or reduction granted to customers under Circular No. 03 will last until December 31, 2021.  

Circular No. 03/2021/TT-NHNN is entering into force as of May 17, 2021.

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