Press Release on issuance of Circular No.03/2021/TT-NHNN
Hanoi, April 2, 2021 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 03/2021/TT-NHNN amending and supplementing a number of Articles of Circular No.01/2020/TT-NHNN dated March 13, 2020 of the SBV Governor requesting the credit institutions and the foreign bank branches to restructure loan maturities, waive and reduce banking fees and interest rates, remain the debt categories to assist COVID-affected customers.
On the basis of the directions of the Government, the Prime Minister, recommendations for amending and supplementing Circular No. 01/2020/TT-NHNN by the credit institutions, the foreign bank branches and the business community, and comments by the Ministry of Finance, Circular No.03 has been formulated with the following aims:
- Continuing to facilitate, helping the enterprises and the people overcome the COVID-19 pandemic impacts through extending the scope of the loan outstandings eligible for restructuring of loan maturities (i.e. extending several timelines as stated in Circular 01).
- Ensuring the goal of supporting right subjects, not allowing any exploitation of the policy for individual profits, which may cause risks to the system of credit institutions in line with the Prime Minister’s directions and the comments by the Ministry of Finance; accordingly, the SBV has amended and supplemented several regulations on conditions for restructuring loan maturities, waiving and reducing interest rates; regulations on classifying and remaining the debt categories, risk provisioning in order to ensure prudent operations of the banking system.
- Amending and supplementing a number of articles to ensure the conformity with the practical implementation of the credit institutions and the foreign bank branches.
The new Circular is composed of 4 Articles:
- Article 1: Amending and supplementing a number of Articles of Circular No. 01/2020/TT-NHNN.
- Article 2: Transitional regulations
- Article 3: Implementation arrangements
- Article 4: Enforcement
The new Circular will take effect from May 17, 2021.
Translated by Le Hang