Focus on implementing credit growth.
Governor of the State Bank of Vietnam, Nguyen Thi Hong, has just issued Directive No. 02 to urge banks to implement policies on restructuring loan repayment periods and maintaining loan classifications to support customers facing difficulties, as stipulated in Circular 02/2023 issued on April 23, 2023.
Specifically, the Governor requested that banks focus on implementing solutions to increase credit growth safely and effectively, improve credit quality, and control and resolve bad debts.
At the same time, commercial banks need to focus credit on priority sectors, production and business activities, and growth drivers to promptly meet the capital needs of people and businesses, contributing to the recovery and development of production and business.
In addition, continue to cut costs to reduce lending interest rates and various fees in order to support businesses and people in recovering and developing production and business.
Actively implementing credit programs and policies for certain sectors and fields as directed by the Government and the Prime Minister ; including the VND 120,000 billion credit package for investors and homebuyers of social housing projects, worker housing projects, and projects to renovate and rebuild old apartment buildings according to Resolution 33 dated March 11, 2023 of the Government.
Furthermore, we will implement with the utmost determination the program to support interest rates from the state budget for loans of enterprises, cooperatives, and business households according to Decree 31, ensuring that no enterprise, cooperative, or business household eligible for interest rate support and in need is left without timely assistance.
The Chairman and CEO of the bank directly oversee the implementation of Circular 02.
Regarding the implementation of Circular 02/2023 issued on April 23, 2023, Governor Nguyen Thi Hong urged banks to promptly issue and implement internal regulations on restructuring loan repayment terms and maintaining loan classifications as stipulated in this Circular.
In particular, any actions that create difficulties or inconveniences, or that introduce additional conditions or procedures different from those stipulated in the Circular, are strictly prohibited.
The Chairpersons of the Board of Members/Board of Directors and the General Directors of credit institutions shall directly supervise the implementation of debt restructuring and maintaining the same debt classification group in accordance with Circular 02, and shall be responsible to the Governor of the State Bank of Vietnam for the results of implementation.
In addition, strict measures will be taken against units and individuals who are slow in implementation, intentionally create difficulties, show irresponsibility, or fail to comply with regulations.
Strengthen communication efforts and make information about the procedures and documentation for restructuring loan repayment terms while maintaining the same loan classification more transparent, so that customers can understand the policy correctly and fully.
Promptly address any issues or difficulties customers encounter regarding documents and procedures, creating favorable conditions to assist customers in completing their applications and accessing support policies as soon as possible.
After restructuring, banks will have to set aside risk provisions according to a set schedule.
In addition, the organization must implement the policy of restructuring debt repayment terms while maintaining the same debt classification in accordance with regulations; closely monitor and ensure safety, prevent and deter the abuse of debt restructuring terms and maintaining the same debt classification for collusion and profiteering from the policy.
Implement debt classification, risk provisioning, and accounting for accrued interest in accordance with legal regulations.
Report promptly and fully on the results of debt restructuring and maintaining the same debt classification in accordance with the regulations and guidelines of the State Bank of Vietnam.
After restructuring, banks will have to set aside risk provisions according to a schedule. Specifically, additional provisions for restructured loans must be set aside in two stages, with a minimum of 50% by December 31, 2023, and further provisions to reach 100% by the end of 2024 .
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