According to the Official Dispatch No. 4056/NHNN-TD dated May 16, 2024 of the State Bank of Vietnam on collecting comments on the draft Circular amending and supplementing a number of articles of the Circular No.02/2023/TT- NHNN that regulates credit institutions and foreign bank branches to restructure debt repayment terms and maintain the same debt group to support customers in difficulty.
The State Bank of Vietnam said that although the macro economy in the first 2 months of 2024 was basically stable, the economy continued its recovery trend but still faced many difficulties and challenges, which are forecasted to continue in 2024.
According to the policy of the National Assembly and the Government, we will continue to support the removal of difficulties to promote economic growth and macroeconomic stability in 2024. Therefore, extending the debt restructuring period according to the Circular 02 will contribute to solving difficulties for borrowers, contributing to the recovery and development of the economy.
In particular, the Circular No. 02 stipulates that credit institutions must determine the specific provision amount that must be set aside for the entire customer's outstanding debt as in the case of not applying the regulation on keeping the debt group intact and must make fully supplemented provision on December 31, 2024.
By December 31, 2024, credit institutions will have enough financial resources to handle risks such as in the case of credit institutions classifying debts and making provision for risk according to current regulations (Circular 11/2021 /TT-NHNN). Therefore, in case of extending the debt restructuring time according to the Circular until December 31, 2024, it will not affect the risk provision mechanism due to extending the debt restructuring time and keeping the debt group intact for the system.
In addition, extending the debt restructuring period according to the Circular No. 02 to December 31, 2024 will contribute to reducing the bad debt increase on the balance sheet of credit institutions and create conditions for credit institutions to solve difficulties for customers, contributing to economic recovery.
Therefore, the State Bank of Vietnam finds it necessary to develop and issue a Circular amending and supplementing some articles of the Circular No. 02 as a basis for credit institutions to implement.
Accordingly, the draft Circular amending and supplementing some articles of the Circular No. 02 is built with 03 Articles, specifically: Article 1, amending and supplementing some articles of the Circular No. 02/2023/ TT-NHNN dated April 23, 2023 that regulates credit institutions and foreign bank branches to restructure debt repayment terms and maintain the same debt group to support customers in difficulty.
1. Amend the Clause 2, Article 4 as follows: “2. The obligation to repay principal and/or interest arises during the period from the effective date of this Circular to December 31, 2024.
2. Amend the Clause 8, Article 4 as follows: “8. Restructuring the debt repayment period for customers according to the provisions of this Circular will be implemented from the effective date of this Circular until December 31, 2024.
Article 2, implementation provisions, “This Circular takes effect from … month…. year 2024”; Article 3, implementation organization.
The Vietnam Banks Association requests member credit institutions to comment on this Draft Circular.
Please send written comments (including word files) to the Vietnam Banks Association through email address: phamthivananh3110@gmail.com before May 25, 2024 (Phone : 0904.431.189 - Ms. Van Anh).
We look forward to receiving the attention and cooperation of your member credit institutions.
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