Banks to reschedule debts, lower interest rates to support firms affected by COVID-19

Friday, 2020-03-13 13:09:54
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SBV Deputy Governor Dao Minh Tu speaking at the meeting on March 12. (Photo: SBV)
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NDO – The State Bank of Vietnam (SBV) will create favourable conditions for credit institutions and branches of foreign banks to proactively reschedule debt payment deadlines and exempt and reduce interest rates and fees for enterprises affected by the COVID-19 epidemic.

SBV Deputy Governor Dao Minh Tu made the statement at the SBV’s meeting held on March 12 to share about SBV Circular 01/2020 issued on the same day that allows credit institutions to take measures to support customers affected by the epidemic.

Tu noted that the circular was issued in a bid to quickly ease the difficulties for borrowers following the instruction from the Government at the regular meeting in February.

The banking sector has adopted solutions to support customers and share in their difficulties since the outbreak of the epidemic, Tu said.

It is estimated that there is about VND926 trillion (US$39.85 billion) in debts affected by the epidemic that are unable to be paid as scheduled, accounting for over 11% of total outstanding loans.

To ensure that the policy will support right subjects and prevent self-seeking purposes, credit institutions must issue internal regulations providing specific guidance on debt rescheduling and the exemption and reduction of interest rates in accordance with the SBV Circular, Tu added.