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Acceleration of the debt rescheduling process for borrowers

03/03/2020

March 2, 2020, the State Bank of Vietnam held a meeting with more than 20 banks on strengthening solutions to remove difficulties for borrowers affected by COVID-19 outbreak.

According to the preliminary report of 23 credit institutions, about VND 926,000 billion of outstanding loans, accounting for about 11.3% of total outstanding loans of the whole system has been affected by this outbreak.

In particular, some of the most affected sectors include agriculture, forestry and fisheries, businesses with import and export activities, accommodation, food, beverage, transportation, textile, footwear, electronics, refrigeration, oil and gas, tourism, education, etc.

In order to solve problems for customers, according to the State Bank of Vietnam, during the past three weeks, banks have conducted debt rescheduling, interest rate reduction and exemption for over 44,000 borrowers with an outstanding loan of VND 222,000 billion in order to share difficulties, provide support for businesses and people to overcome difficulties.

Evaluating the extent of the damage caused by the COVID-19 outbreak, leaders of many banks said that the worsening outbreak of COVID-19 will weigh on their own banks' profitability because borrowers are affected by the decline in revenue and sources of interest payment.

Therefore, banks also face difficulties. In order to solve problems for businesses and individuals, banks must join hands, share difficulties with customers, and also to help themselves.

Mr. Dao Minh Tu - Deputy Governor of the State Bank - said that the State Bank of Vietnam is coordinating with relevant ministries and agencies to actively and urgently complete the legal system to create favorable conditions for credit institutions and enterprises to overcome difficulties caused by the COVID-19 outbreak.

In particular, the State Bank is carrying out procedures to quickly issue a circular guiding debt rescheduling, interest rate reduction and exemption, keeping customers affected by the outbreak in their current debt group for credit institutions.

Under the direction of the State Bank of Vietnam, Agribank will apply measures such as debt rescheduling, exemption and reduction of interest, temporarily keeping the debt group for those customers affected by COVID-19 outbreak. In addition, new loans will be provided to customers in accordance with regulations to stabilize production and business.

 

Kylie Nguyen
 

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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