State Bank of Vietnam urges debt repayment restructuring, maintains debt group for customers in difficulty

On May 23, 2023, the Governor of the State Bank of Vietnam issued Directive No. 02/CT-NHNN on strengthening credit activities and implementing policies on restructuring debt repayment terms and maintaining debt groups to support customers facing difficulties as prescribed in Circular 02/2023/TT-NHNN dated April 23, 2023.

The Directive stated that in recent times, the world situation has continued to develop complicatedly; difficulties and challenges have increased; global production, business, investment and consumption activities have slowed down; low growth accompanied by recession risks in a number of economies has significantly impacted the socio-economic development of a country with a large economic openness like Vietnam.

Accordingly, domestic economic growth in the first quarter reached only 3.32%, almost the lowest compared to the same period since 2011 due to the decline in world demand and weak domestic demand. People and businesses faced difficulties in production and business activities, lack of orders, output markets... leading to a decrease in revenue and income, affecting the ability to repay loans at credit institutions and foreign bank branches.

In that context, credit institutions have proactively had many policies and solutions to support people and businesses facing difficulties in the spirit of sharing and companionship: With tradition and following the policy of supporting people and businesses during the recent COVID-19 pandemic.

State Bank of Vietnam urges restructuring of debt repayment terms, maintains debt groups for customers in difficulty - 1 — The State Bank of Vietnam requires banks to restructure debt repayment terms and maintain debt groups for customers in difficulty. (Illustration photo)

Previously, based on Resolution No. 50/NQ-CP dated April 8, 2023, Resolution 59/NQ-CP dated April 23, 2023 of the Government , the Governor of the State Bank of Vietnam issued Circular 02/2023/TT-NHNN dated April 23, 2023 regulating the restructuring of debt repayment terms and maintaining debt groups by credit institutions and foreign bank branches to support customers facing difficulties in production and business activities and customers facing difficulties in repaying loans for living and consumption needs.

To effectively implement Circular 02/2023, the Governor of the State Bank of Vietnam requires credit institutions to promptly issue and immediately implement internal regulations on restructuring debt repayment terms and maintaining debt groups. Any acts that cause difficulties, inconvenience, or issue additional conditions and procedures other than those prescribed in Circular 02/2023 are strictly prohibited.

The Directive also clearly states the responsibility of the Chairman of the Board of Members, Board of Directors, and General Director of credit institutions to directly direct the implementation of debt restructuring and maintaining the debt group according to Circular 02/2023 and be responsible to the Governor for the implementation results, and take strict measures to handle units and individuals who are slow to implement, intentionally cause difficulties, lack responsibility, and do not comply with regulations.

Banks must publicize the documents and procedures for restructuring debt repayment terms and maintaining debt groups so that customers can grasp information, correctly and fully understand the policy. Promptly answer customers' questions about documents and procedures, create favorable conditions to support customers in completing their documents and soon accessing support policies.

In addition, the Governor also requested credit institutions to implement the policy of restructuring debt repayment terms and maintaining debt groups in accordance with regulations; closely monitor and prevent the exploitation of restructuring debt repayment terms and maintaining debt groups to collude and take advantage of policies.

At the same time, proactively handle difficulties and problems in the system and promptly report and propose to the State Bank, ministries, branches, provincial and municipal People's Committees measures to handle difficulties and problems beyond their authority during the implementation process.

Cong Hieu

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