Which businesses get interest reduction and delayed debt payment due to Covid-19?

Quynh Trang March 14, 2020 07:09

Enterprises that have suffered losses due to the Covid-19 pandemic and are able to repay their debts after restructuring will have their interest rates waived and their debt repayment deadlines extended for up to 12 months.

According to Circular 01 recently issued by the State Bank, commercial banks have the right to decide on restructuring for customers affected by Covid-19, based on general principles.

Customers whose revenue has decreased due to Covid-19, have loans or financial leases that must pay principal and/or interest from January 23 to the day immediately following 3 months from the date the Prime Minister announced the end of the epidemic and cannot pay the debt on time, are eligible for restructuring.

Banks will restructure the repayment period for up to 12 months for loans that are still due or 10 days overdue, or for loans overdue from January 23 to March 29.

Mr. Dao Minh Tu - Deputy Governor of the State Bank said that banks are the ones who decide to lend so they will proactively decide on the repayment period structure for customers. However, the maximum repayment extension period is 12 months from the last day customers must pay off all principal and interest.

In addition, commercial banks decide to exempt or reduce interest and fees for loans subject to restructuring.

Loans with restructured repayment terms or interest exemptions will also be kept in the same debt group by the bank. For the interest receivable of these outstanding loans, the bank does not have to account for the accrued interest but monitors the off-balance sheet to urge collection and accounts for income when collected.

The State Bank leader said that Circular 01 creates the most favorable conditions for banks to proactively restructure maturing debts for businesses, but must also ensure support for the right subjects suffering losses.

The risk management director of a state-owned bank said that the State Bank's Circular does not limit the sectors that receive support. Due to the interconnected impact between sectors, most sectors are affected, and the determination of affected enterprises will essentially be based on the assessment of revenue decline and customer demand when compared with the previous months, the same period last year or compared with the plan. The bank will also assess the enterprise's ability to repay debt after restructuring to decide on restructuring for them.

According to vnexpress.net
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Which businesses get interest reduction and delayed debt payment due to Covid-19?
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