Under Circular No 03/2021/TT-NHNN dated April 2, 2021, the central bank gives permission to financial institutions to reschedule debts with repayment obligations incurred from January 23, 2020 to the end of this year.
The time to restructure repayments is not to exceed 12 months from the day financial institutions begin the process.
Experts from the VNDIRECT Securities Corporation said the amount of restructured debts may increase but will not have a critical impact on banks’ return on assets.
According to the SBV’s figures, as of mid-November 2020, repayments on more than 341.8 trillion VND (14.83 billion USD) worth of outstanding debt had been rescheduled.
Secretary General of the Vietnam Banks Association Nguyen Quoc Hung said that the circular will help financial institutions handle the challenges that come with restructuring debts, adjusting payment terms, and reducing or exempting interest rates in a sensible fashion.
Circular No 03 amends and supplements a number of articles in Circular No 01/2020/TT-NHNN dated March 13, 2020./.
Source: VNA