On March 13rd, 2020, the State Bank of Vietnam issued Circular 01/2020/TT-NHNN for credit institutions, foreign bank branches on restructuring the term of debt repayment, interest rate and fee reduction, exemption, and keeping the same group of debts due to the impact of Covid-19 , whereby:
Credit institutions, foreign bank branches shall decide on the reduction and exemption of interest and fees according to internal regulations for outstanding loan arising from credit granting activities (except for buying and investing in coporate bond activities). Clients who are eligible for the debt restructuration:
- The obligation to pay principal and/or interest is due in the period from 23/01/2020 to the next day after 03 months from the date the Prime Minister announced the end of the Covid-19 epidemic.
- Clients who fail to repay principal and/or interest in full and on schedule as specified in the contract, agreement due to the drop of revenue, income as a consequence of Covid-19.
Bankruptcy
