Official Dispatch No. 405/NHNN-CSTT of April 16, 2002, guidance on compliance with the provision on conversion to overdues đã được thay thế bởi Decision No. 127/2005/QD-NHNN of February 3, 2005, on the amendment, supplement of several articles of the regulation on lending by credit institutions to customers issued in conjunction with the Decision No. 1627/2001/QD-NHNN dated 31 December 2001 of the Governor of the State Bank và được áp dụng kể từ ngày 07/03/2005.
Nội dung toàn văn Official Dispatch No. 405/NHNN-CSTT of April 16, 2002, guidance on compliance with the provision on conversion to overdues
THE STATE BANK OF VIETNAM | SOCIALIST REPUBLIC OF VIETNAM |
No. 405/NHNN-CSTT | Hanoi, April 16, 2002 |
To: Credit Institutions
Paragraph 2 Article 13 of the Regulation on lending by credit institutions to customers issued in conjunction with Decision No.1627/2001/QD-NHNN dated 31 December, 2001 of the Governor of the State Bank of Vietnam, effective from 01 February, 2002 stipulates: If a customer fails to make a timely repayment by the time of the repayment of principal or payment of interest and their term of repayment is not adjusted or rescheduled, credit institutions shall classify the total outstanding amount of the debt as overdues. The State Bank of Vietnam provides guidance on the compliance by credit institutions with this provision as follows:
1. From 1 February, 2002 to 30 June, 2002, credit institutions shall not yet undertake the classification of overdues in accordance with the Regulation on the lending issued in conjunction with Decision No.1627/2001/QD-NHNN but comply with the provision in paragraph 2 Article 13 of the Regulation on lending issued in conjunction with the decision No.284/2000/QD-NHNN1 dated 25 August, 2000 of the Governor of the State Bank. As from 1 July, 2002, credit institutions shall undertake the classification of overdues in compliance with provision in paragraph 2 Article 13 of the Regulation issued in conjunction with Decision No. 1627/2001/QD-NHNN as follows:
a. Provision on the classification of overdues in paragraph 2 Article 13 of the Regulation on lending issued in conjunction with Decision No.1627/2001/QD-NHNN shall be applicable to loans made under credit contracts which were and are entered into prior and after 1 February, 2002;
b. By the time of principal payment within the repayment period agreed upon in a credit contract, if a customer fails to make the timely payment of the due principal and the credit institution does not agree to adjust the repayment date for the principal, the credit institution shall classify the total remaining principal of that credit contract as overdues.
c. By the end of the repayment period as agreed upon in a credit contract, if a customer fails to make fully the timely payment of the due principal and interest and the credit institution does not agree to extend the repayment date for the principal and interest, the credit institution shall classify the total remaining principal of that credit contract as overdues.
d. Cases where the classification of overdues in accordance with provision in paragraph 2 article 13 of the Regulation on lending by credit institutions to customers issued in conjunction with Decision No.1627/2001/QD-NHNN is not applicable: For preferred loans and made to State developmental investment projects under direction or entrustment of the Government, the classification of overdues in respect of these loans shall be made in accordance with provisions of the Government.
2. For cases where it is possible that customers delay their payment for several working days after the repayment date, credit institutions should take following measures: providing guidance to customers for their knowledge and compliance with new provisions on the classification of overdues; taking initiative to force their timely payment of interests; agreeing with customers on the interest collection dates corresponding to the cycle of their production, trading of products, crops, husbandry or agreeing in credit contracts on the classification of overdues of interest payments which are made a certain number of working days after the payment date and for which there is no written request for rescheduling being made.
3. With regard to the application of interest on overdue principal
a. The level of interest applicable to overdue debts shall be applied in accordance with provision in paragraph 2 Article 11 of the Regulation on lending issued in conjunction with Decision No.1627/2001/QD-NHNN.
b. For the overdue outstanding debt that is classified as overdues under point b paragraph 1 of this correspondence, the overdue interest rate shall only be applicable to the overdue principal that customers fails to repay on time; for the outstanding principal that has not yet become due but has to be classified as overdues, credit institutions shall apply the interest rate agreed upon in the credit contract.
For overdue outstanding debts that are classified as overdues under point c paragraph of this correspondence, the overdue interest rate shall be applicable to the whole outstanding debts that are classified as overdues.
4. Credit institutions shall perform the accounting, monitoring of overdue debts in accordance with current provisions and related written guidelines of the State Bank of Vietnam.
5. Credit institutions shall perform the classification and the risk provisioning for the arising overdue debts in accordance with the Decision No. 448/2000/QD-NHNN5 dated 27 November, 2000 of the Governor of the State Bank and related written guidelines.
| FOR THE GOVERNOR OF THE STATE BANK |
