Updated  
April, 26 2012 10:21:32

Banks urged to help ailing firms

HA NOI — The CC of Viet Nam (SBV) on Tuesday asked foreign bank branches and credit institutions to restructure the debt repayment period in accordance with current regulations, in a move to remove obstacles for businesses.

SBV required foreign credit institutions to collaborate with borrowers to review their debt repayment potential in order to assist them in repaying loans. Efforts would be made to allow businesses to repay in accordance with their business cycle, pay-off periods of the projects, loan utilisation plans, and debt repayment capacity of their own customers.

According to current regulations, credit institutions can consider rescheduling repayment periods for borrowers who are unable to repay principal and/or interest on time.

Credit institutions are also allowed to uphold the loan classification of business debts after adjusting repayment periods, if enterprises operate well and show that they have the potential to repay.

The SBV also requested the credit institutions to consider adjusting lending interest rates specified in the loan contracts down to current rates, based on their financial capability and customer policies. This step was especially urged for institutions lending to agriculture and rural development, exports, support industries, small- and medium-enterprises and labour-intensive firms.

Credit institutions were also asked to consider eliminating or reducing payable interest for borrowers who face financial hardship as a result of a loss of assets, in accordance with a decision from 2001.

Besides the requirement to restructure loans, the SBV also expected to further cut lending interest rates to give enterprises increased access to credit as they face severe capital shortages. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Experts slam failure to save old trees Experts slam failure to save old trees

Distinguished scientists and experts in the field of urban planning raised many challenges at a conference yesterday to review Ha Noi's urban tree planning.

Whistleblowers to be rewarded up to US$160,000 1    Whistleblowers to be rewarded up to US$160,000

The Ministry of Home Affairs and the Government Inspectorate have issued a joint circular announcing that whistleblowers will be rewarded up to VND3.4 billion (US$160,000).

Daewoo founder seeks to inspire youth Daewoo founder seeks to inspire youth

As you get older, you spend hours regretting each minute you wasted in your youth, which flies by.

IZ firms find pollution controls too expensive IZ firms find pollution controls too expensive

Many companies in industrial zones claim they lack capital to introduce equipment to save energy and lessen emissions.

Caves in Quang Binh will soon echo with the sounds of runners Caves in Quang Binh will soon echo with the sounds of runners

Quang Binh, home of the biggest cave in the world, Son Doong, is offering visitors treks, caving tours and a race.