|
Banks to help enterprises refinance debt
The State Bank of Viet Nam (SBV) has asked commercial banks to reschedule enterprises' loans that they have not been able to pay back on time because of negative economic conditions.
 |
|
Customers at Vietcombank's Thanh Hoa branch. Banks have been required to reschedule loan payments for enterprises. |
The restructuring of loans will be done in accordance to Decision No 783/2005/QD-NHNN of the SBV Governor dated May 31, 2005.
Under this decision, commercial banks would have to restructure enterprises' repayment schedules based on their financial capacity, said Nguyen Thi Hong, director of the central banks' Monetary Policies Department.
Commercial banks would have to consider extending loans to borrowers currently unable to repay the principal or interest of their loans on schedule but are evaluated to have the ability to do so later, Hong told the Tuoi Tre newspaper.
The central bank has also required commercial banks to actively work with borrowers finding it difficult to repay loans so that they can access more credit and gradually restore, maintain and expand production and business.
This measure was aimed at helping commercial banks reduce bad debts and continue to extend new loans to solvent customers with effective plans and projects, she said.
The restructuring of repayment would only apply to enterprises in "temporary difficulties", she added.
The central bank would not accept credit organisations extending or suspending loans to help enterprises survive if such supporting activities violated legal regulations, Hong said.
Several bankers echoed Hong.
Do Minh Toan, general director of Asia Commercial Bank (ACB), said clients had to prove they could repay loans after they were restructured, but did not explain how the latter would do it.
General director Nguyen Phuoc Thanh of the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) also said his bank would likely extend the repayment period for borrowers that were facing many difficulties but required them to show the ability to restore and develop in the future.
In other words, Thanh said, the loan extension policy would apply only to enterprises that had clear and effective development plans.
vietnamnews
|
