Công văn 1117/NHNN-TD

To: Credit institutions and foreign bank branches

Presently, the Novel Coronavirus Pneumonia (hereinafter referred to as “Covid-19”) becomes more complicated and significantly affects business, and credit activities of credit institutions and foreign bank branches (hereinafter referred to as “credit institutions”).

On February 14, 2020, the Government has promulgated a Resolution No. 11/NQ-CP on the Government’s Regular Meeting in January, 2020, in which “State Bank of Vietnam (SBV) is tasked with directing credit institutions to perform debt rescheduling, exemption or reduction of loan interests, retention of debt category and grant of new loans to assist both corporate and individual borrowers in stabilizing their business and dealing difficulties".

In order to implement the above-mentioned directives of the Government, SBV hereby requests credit institutions to perform the following duties:

- Take the initiative in grasping the business situation, reviewing and evaluating losses and damage due to Covid-19 incurred by borrowers in order to:  

+ Reschedule debts, exempt or reduce interests and temporarily retain the categories of debts of borrowers affected by Covid-19 and of which the principal and/or interest become(s) due within the period from January 23, 2020 to March 31, 2020, until SBV promulgates Circulars providing specific guidelines on these contents;

+ Consider granting new loans to assist borrowers in stabilizing their business.

- Debt rescheduling, exemption/reduction of interests, and retention of debt category must meet the following requirements:

+ Debt rescheduling shall be considered and approved according to the borrower’s request and the credit institution’s evaluation of losses and damage incurred by the borrower as well as the borrower’s financial status and ability to repay the debt after it is rescheduled; 

+ Each credit institution shall provide specific guidance on this content which shall be applied consistently throughout its network and include guidance on criteria for certification of debts of borrowers affected by Covid-19; procedures for inspection, control and supervision of rescheduled debts, debts whose interests are exempted or reduced, or whose categories are kept unchanged. Credit institutions shall decide and assume responsibility for their decisions on debt rescheduling, exemption/reduction of interests and retention of categories of debts of borrowers affected by Covid-19 in accordance with the guidelines herein; ensure the strict and proper implementation of the guidelines herein, which should not be employed for profiteering or incorrectly reflecting the credit quality.

- Submit reports to SBV (via Bank Supervision and Inspection Agency, Department of Economic Sector Credit) on debt rescheduling, exemption/reduction of interests, retention of debt category and grant of new loans to borrowers affected by Covid-19 on March 15, 2020 and March 31, 2020 (according to the report form enclosed herewith).

- Credit institutions and foreign bank branches are requested to implement these SBV’s guidelines./.