Government policy and direction of the State Bank of Vietnam on the implementation of solutions to support individuals, enterprises affected by COVID-19

   According to the latest forecast of IFM, due to impact of COVID-19 epidemic, global GDP growth will only reach -3% GDP, of which, GDP growth of regions will be -0,6% of ASEAN; -5,9% of US; -6,5% of UK and -7,5% of Eurozone. Developing economies will experience a 2% decline in GDP instead of the average growth of 4.6% per year during the previous 60 years. Meanwhile, APEC predicated that GDP of 21 member economies would fall by 2,7% in 2020. Vietnam’s economy has been suffered many losses and difficulties, not only reducing the number of foreign tourists, total retail sales of goods and revenue from consumer services, additional FDI, capital contribution, but also decrease in registered capital and number of employees of newly registered enterprises, number of enterprises returning to operation and registered capital adding to the economy (first time in decades, the number of enterprises withdrawing from the economy is larger than the number of newly registered enterprises).

   The Gorvernment has been issuing policies to support enterprises and people affected by the pandemic, such as on March 13, 2020, the State Bank of Vietnam promulgated Circular No. 01/2020/TT-NHNN on debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-Covid-19 pandemic.

   Accordingly, the subjects of this Circular include:

 “Article 2. Regulated entities

   1. Credit institutions (except policy banks) and foreign branch banks (FBBs).

   2. Clients of credit institutions and FBBs (except clients that are credit institutions and FBBs themselves).

   3. Other organizations and individuals relevant to debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-Covid-19 pandemic.”

   Specifically, customers can be rescheduled the principal and/or interest when fully meeting the following conditions:

“Article 4. Debt rescheduling

   1. An outstanding debt, including the principal and/or interest (including the debts regulated by the Government's Decree No. 55/2015/NĐ-CP) may be rescheduled if it fully satisfies the following conditions:

   a) The debt is a loan or finance lease;

   b) The principal and/or interest arises during the period from January 23, 2020 to the day after 03 months after the day on which the Prime Minister declares the end of the Covid-19 outbreak;

   c) The borrower is unable to repay the principal and/or interest under the loan/finance lease agreement due to decrease in revenue caused by Covid-19 pandemic.”

  The reschedule shall be conducted in the following cases:

   “a) The unpaid debt is undue or up to 10 days overdue according to the loan/finance lease agreement;

   b) The debt is overdue (except for the cases in Point a of this Clause) during the period from 23/01/2020 to the 16th day from the effective date of this Circular.”

_____________________________________________________

Should you need any legal support, please do not hesitate to contact us via:

VEGA Law Firm
Address: Lot A+K, 4th Floor, VTP Building, No. 8 Nguyen Hue Blv., Dist.1, HCMC
Hotline: +84 2838 273747
Facebook: vegalawfirmvietnam
Email: info@vega-lawfirm.com
Website: www.vega-lawfirm.com