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SBV requires credit institutions to take effective measures on credit extension
The State Bank of Vietnam (SBV) issued Document No. 2506/NHNN-CSTT on April 24 on effective measures of credit extension to be executed by credit institutions and foreign bank branches.
Accordingly, in order to continue taking effective measures of credit extension with the aim of facilitating enterprises and households to gradually restore and maintain production and business, the SBV requires credit institutions and foreign bank branches (hereafter called as credit institutions) to performs the following tasks:
To actively coordinate with their borrowers in assessment of repayment capacity of the borrowers in order to cope with difficulties in repaying the debts in accordance with the cycle of production, business, the timeline of capital recovery of the projects, loan utilizing plan, and the repayment capacity of borrowers. Based on assessment of repayment capacity of the borrowers and their financial capacity, credit institutions reschedule loans for those borrowers who are unable to repay debts on due date as agreed in the credit contracts as stipulated in Decision No. 783/2005/QD-NHNN dated May 31, 2005
To perform the classification of rescheduled loans as stipulated in Decision No. 780/QD-NHNN dated April 23, 2012 on classification of rescheduled loans.
The SBV Governor also requires credit institutions to consider the possibility of lowering lending rates of their credit contracts to the level of current lending interest rates, especially for agricultural and rural development, goods manufacturing for export, supporting industries, and small and medium enterprises.
Moreover, credit institutions are requested to consider the possibility of exemption or reduction of interest rates for customers with asset losses leading to financial problem in accordance with the Regulations on lending by credit institutions to customers issued together with Decision No.1627/2001/QD-NHNN dated December 31, 2001 and on the basis of financial capacity and their regulations on exemption and reduction of interest rates.
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