The draft Circular proposes to amend and supplement regulations on debt repayment rescheduling in Article 4 of Circular 01/2020/TT-NHNN .
Specifically, credit institutions and foreign bank branches restructure the repayment term for the outstanding balance of principal and/or interest of a debt (including debts under the scope of Decree 55). /2015/ND-CP (amended and supplemented)) when the following conditions are fully satisfied:
1. Incurred before August 1, 2021 from lending and financial leasing activities. (Currently, according to Circular 01 , arising before June 10, 2020).
- Reason: Faced with the complicated situation of the 4th COVID-19 epidemic with a wider and more serious impact than previous epidemics, production, business, and people's lives people and businesses are negatively affected; decrease in revenue and income; affecting the repayment ability of customers for outstanding balances due after July 17, 2021 (the date the Prime Minister issued Official Letter 969/TTg-KGVX to apply measures to implement social distancing). to protect and take care of people's health), accordingly: these balances belonging to debts of customers arising until the end of July 2021 will be affected by social distancing to prevent epidemics.
2. Having an obligation to repay principal and/or interest in the period from January 23, 2020 to June 30, 2022. (Currently, there is an obligation to repay principal and/or interest in the period from January 23, 2020 to December 31, 2021)
- Reason: At the regular meeting of the Government in June 2021, according to the report of the Minister of Health to the Government on the import roadmap for COVID-19 vaccine and vaccination plan: Ministries and agencies are continuing continue to promote research, technology transfer and domestic vaccine production. The Government and the Prime Minister have directed the development of a plan and preparedness for the implementation of the vaccination campaign on a national scale, striving for 70-75% of the population to be vaccinated by the end of 2021 and the beginning of 2022. .
- Accordingly, Vietnam needs a period of time (from now until the end of 2021) to receive the necessary amount of vaccine to vaccinate people, thereby minimizing the impact of the Covid-19 epidemic on the economy. .
- On August 6, 2021, the Government issued Resolution 86/NQ-CP on urgent measures to prevent and control the Covid-19 epidemic to implement Resolution 30/2021/QH15 dated July 28, 2021 of the Government. The 15th National Assembly, which has set a goal of Ho Chi Minh City fighting to control the epidemic before September 15, 2021. The provinces of Binh Duong, Long An and Dong Nai strive to control the epidemic before September 1, 2021. Other provinces and cities strive to control the epidemic before August 25, 2021.
- Based on the above vaccination plan and disease control plan, in the 1st Draft Circular to consult with units in the State Bank, the Banking Inspection and Supervision Agency evaluated and proposed the rescheduling of debt repayment, exemption and reduction of interest and fees, and keeping the same debt group applied to the debt balance arising in the period from January 23, 2020 to June 30, 2022 is appropriate to support Better support for businesses and people affected by the epidemic, accordingly, customers affected by the Covid-19 epidemic will have an additional period of 06 months to restore production and business.
3. Debt balance of a debt whose repayment term is restructured in one of the following cases:
- The outstanding balance of the debt is due or overdue up to 10 (ten) days from the payment due date, the debt payment term according to the contract or agreement, except for the cases specified at Points b and c of this Clause;
- The outstanding balance of the debt arising before January 23, 2020 and overdue in the period from January 23, 2020 to March 29, 2020;
- The outstanding balance of the debt arising from January 23, 2020 to before June 10, 2020 and overdue before May 17, 2021.
- Outstanding balance of debts arising from June 10, 2020 to before August 1, 2021 and overdue from July 17, 2021 to before …/…/2021 (the time when the draft Circular has enforceable effect). (Additional suggested content)
- Reason: The addition is in accordance with the construction principles of Circular 01 and Circular 03 (there are regulations on rescheduling the repayment term for overdue balances before the date of Circular 01). and Circular 03 takes effect).
- In fact, on July 17, 2021, the TTgCP issued Official Letter 969/TTg-KGVX on the implementation of social distancing for epidemic prevention and control in some localities, of which 19 provinces and cities are allowed to implement the Directive. 16/CT-TTg on the implementation of social distancing leading to negative impacts on production, business and life of people and businesses; causing a decrease in revenue and income, affecting customers' ability to repay debts for due balances in the period from July 17, 2021 to the effective date of the Draft Circular ( because this debt balance is not within the scope of application of Circular 01 and Circular 03 In order to get credit institutions and foreign bank branches to restructure the repayment term, this debt balance will be converted into overdue debt by credit institutions and foreign bank branches).
4. Being assessed by a credit institution, foreign bank branch's customer's inability to repay the loan principal and/or interest on time under the contract or agreement due to a decrease in revenue and income due to the influence of Covid-19 pandemic.
5. The customer has requested to be restructured the repayment term and the credit institution, foreign bank branch evaluates the customer's ability to fully repay the principal and/or interest according to the agreed repayment term. restructure.
6. Credit institutions, foreign bank branches fail to restructure debt repayment term for debts in violation of law provisions.
7. The time for debt rescheduling (including debt extension) is suitable to the extent of the impact of the Covid-19 epidemic on customers and must not exceed 12 months from the date the credit institution, foreign bank's branch shall restructure the repayment term or from the due date of each debt balance the repayment term shall be restructured.
- The above amendment is suitable for the due date of each debt balance to be rescheduled for debt repayment in case the credit institution, foreign bank's branch restructures the repayment term at the same time for each debt balance. different debt balances, avoiding the need for credit institutions and foreign bank branches to restructure the repayment term many times for each debt balance of each repayment term.
8. The restructuring of the debt payment term for customers is done until June 30, 2022. (Currently, the restructuring of debt repayment terms for customers is done until December 31, 2021).
- Amendment to suit the expansion of the scope of debt repayment obligations specified in Clause 2, Article 4 of Circular 01 .
Thus , with this proposal, the debt restructuring period will be extended by 6 months to support borrowers affected by Covid-19.
