The State Bank of Vietnam has issued a Decision on restructure of loan repayment term, please let me know the main contents of this Decision?
On 31 May 2005, the State Bank of Vietnam issued the Decision No 783/2005/QD-NHNN on amendment of and supplement to Clause 6 of the Article 1 of the Decision No 127/2005/QD-NHNN dated February 3, 2005 of the Governor of the State Bank on amendment of and supplement to a number of articles of the Regulations on loan provided by credit institutions to clients as promulgated together with Decision No. 1627/2001/QD-NHNN dated December 31, 2001 of the Governor of the State Bank. The restructure of loan repayment term are as follows:
Credit institutions decide by themselves the restructure of loan repayment term, on the basis of their financial capability and evaluation of repayment capability of clients:
a) Clients who are not able to pay principles and/or interest of loan on schedule in borrowing period as regulated in the facility agreement and credit institutions evaluate that they are able to repay loan in next period, then credit institutions consider to readjust the time limit for loan repayment of principle and/or interest thereon.
b) Clients who are not able to pay principles and/or interest of loan on schedule in borrowing period as regulated in the facility agreement and the credit institutions evaluate that they are able to repay loan in a fixed time after borrowing period, then the credit institutions shall consider to extend loan repayment term in line with repayment capacity of clients.
Consulted by InvestConsult Group
Vietnamese
