Saturday, September 23, 2023 8:37:49 PM - Markets open
VN-INDEX 1,193.05 -19.69/-1.62%
HNX-INDEX 243.15 -8.72/-3.46%
UPCOM-INDEX 90.76 -1.63/-1.76%
Credit institutions allowed to reschedule repayment terms
Vietnam News - 4/25/2023 4:30:53 PM
 (0 ratings. You must sign in to rate.)
Credit institutions and foreign bank branches are now allowed to restructure the repayment terms to support clients struggling with production and business expenses.
The State Bank of Vietnam (SBV) on Sunday issued Circular No. 02/2023/TT-NHNN stipulating the restructuring of repayment terms and keeping the debt group of credit institutions and foreign bank branches unchanged.
The rescheduling of debt repayment terms for customers is implemented from the effective date of this circular, starting from April 24 to the end of June 30, 2024.
Restructured debts include loans and financial leases.
SBV authorised credit institutions and foreign bank branches to take the initiative in reviewing and assessing the difficulties of borrowers to decide on the restructuring.
The rescheduled terms shall be decided by credit institutions but not exceed 12 months from the due date of the balances subject to the restructured repayment term.
The just-issued circular, along with other supportive policies, will contribute to removing difficulties for people and businesses, extending the lending period, repaying bank loans, and creating conditions for continued capital turnover and access to new loans.
In a meeting with representatives of the central bank at the end of March, business leaders all expressed their most pressing need for a suspension of debt payments.
Most export items saw a decline in the first quarter, which led to a slowdown in GDP growth.
Nguyễn Ngọc Hòa, chairman of the HCM City Union of Business Association (HUBA), said: "Since the beginning of the year, the city's main export industries have all dropped sharply by 20-40 per cent. Although businesses have limited expansion, they still need capital to endure this tough time."
Đinh Trọng Thịnh, senior lecturer at the Academy of Finance, said that the circular helps banks have a legal basis to be able to extend, postpone, and charge off debt groups for businesses, thereby creating favourable conditions for businesses to access credit.
However, other financial experts said the rescheduling term of 12 months is short. Therefore, the period should be extended to support individuals and enterprises in overcoming challenges due to the slowdown of the global economy.
In the middle of last year, a debt restructuring policy was also issued to support businesses affected by the COVID-19 pandemic.
Statistics showed that in the previous debt restructuring for clients affected by the pandemic, nearly 1.1 million debtors had their repayment terms restructured, keeping the debt group with an accumulated value of more than VNĐ722 trillion (US$30.7 billion).
Recently, Prime Minister Phạm Minh Chính, in a meeting with SBV, requested the central bank to amend bond regulations and reschedule debts for businesses.
The PM asked for the completion of the draft circular amending Circular 16/2021 on credit institutions buying and selling corporate bonds in the direction of allowing banks to immediately buy corporate bonds.
According to regulations applied in 2021, banks can only buy unlisted corporate bonds 12 months after these bonds are sold and can only repurchase the same type of bonds that were sold by credit institutions before.
The SBV's recent amendment is to allow credit institutions to buy back unlisted or unregistered bonds on UPCoM that banks sold before the end of 2023. — VNS
Read original article here
Newer News
11/09 Banks made big profits from foreign exchange business
09/09 Borrowers benefit from new lending policy
06/09 Low credit growth, reducing profit put pressure on bank prospects in 2023
06/09 Bank loans to real estate business rise in H1 2023
25/08 SBV fixes law in favour of economic growth
25/08 Private bond market grows stably after first month operation
22/08 Experts propose to cut interest rates of loans for social housing developers and buyers
19/08 Economic difficulties cause gold demand to drop sharply
15/08 SHB increases charter capital to nearly US$1.51 billion
11/08 Lending rate forecast to drop sharply in H2 2023
Older News
24/04 Việt Nam’s currency stable despite global uncertainties
10/04 Overnight interbank interest rate surges in week
10/04 Việt Nam’s banking system shows signs of money surplus
04/04 HoREA proposes credits for real estate firms to pay for maturing bonds
01/04 SBV asks to issue revised decree on foreign ownership cap at VN banks
01/04 Vietcombank must maintain key role in Việt Nam's banking system: PM
30/03 SBV's draft regulations encourage banks to support corporate bond market
30/03 Banks need drastic solutions to gain growth in 2023
28/03 MoF proposes changes to preferential tax policies
27/03 Corporate bond issuance surges in March after prolonged inactivity
Newsletter Signup
Top Stories
SSC to prohibit the use of automated order placement
Shares gain ground on the back of large-caps
Market expected to perform positively on Biden's visit
Stock market to regain growth momentum in H2
CPI increases 0.88 per cent in August
Market Update
Last updated at 3:05:08 PM
VN-INDEX 1,193.05 -19.69/-1.62%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.