Headlines 14/03/2020 10:33 SA

Lending interest relief for borrowers afflicted with Covid-19

Văn Ngọc

State Bank of Vietnam has recently promulgated the Circular No. 01/2020/TT-NHNN regulating reschedule of debt repayment, interest or fee exemption, reduction or unchanged classification of debt by credit institutions and foreign bank branches due to Covid-19.

According to this document, credit institutions and foreign bank branches may decide to apply exemption or reduction of interest or fees prescribed in internal rules and regulations with respect to outstanding debts incurred from credit facilities (except corporate bond purchase and investment) to the following borrowers:

- Borrowers whose obligations to repay principal and/or interest due during the period from January 23, 2020 to the day immediately following the ending date of the period of 3 months starting from the date of Prime Minister’s announcement of eradication of Covid-19; and 

- Borrowers who are incapable of repaying principal and/or interest debts by maturity dates under terms and conditions of lending contracts or agreements due to decreases in their revenue and income caused by Covid-19.

Circular No. 01/2020/TT-NHNN is set to commence on March 13, 2020.

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