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