Headlines 11/09/2021 17:00 CH

Interest subsidies granted to Covid-19 stricken borrowers are applied until June 30, 2022

Châu Thanh

On September 7, 2021, the Governor of the State Bank of Vietnam promulgates the Circular No. 14/2021/TT-NHNN amending the Circular No. 01/2020/TT-NHNN concerning debt rescheduling; interest and fee reduction or exemption; debt non-restructuring for the purpose of supporting customers stricken with Covid-19.

According to this Circular, credit institutions and foreign bank branches may decide to grant exemption or reduction of interest or fees according to their internal rules and regulations with respect to outstanding debts arising from credit extension activities before August 1, 2021 (except corporate bond purchase and investment) if:

- Obligations to repay principal and/or interest are due during the period from January 23, 2020 to June 30, 2022; and  

- Borrowers who are incapable of repaying principal and/or interest debts by maturity dates under terms and conditions of lending contracts or agreements due to decreases in their sales and income caused by the Covid-19 outbreak.

Interest and fee exemption or reduction granted to customers will last till June 30, 2022.  

(Earlier, the Circular No. 03/2021/TT-NHNN prescribes interest and fee exemption or reduction granted to borrowers until December 31, 2021).  

Circular No. 14/2021/TT-NHNN is entering into force as of September 7, 2021.

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