Consider restructuring debt repayment period until December 31, 2025

Accordingly, the debt repayment restructuring will apply to customers including branches, representative offices of credit institutions, foreign bank branches in the provinces and centrally-run cities including: Ha Giang, Cao Bang, Lang Son, Bac Giang, Phu Tho, Thai Nguyen, Bac Kan , Tuyen Quang, Lao Cai, Yen Bai, Lai Chau, Son La, Dien Bien, Hoa Binh, Hanoi, Hai Phong, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, Thai Binh, Nam Dinh, Ha Nam, Ninh Binh, Quang Ninh, Thanh Hoa facing difficulties in debt repayment due to the impact and damage of storm No. 3.

The draft Circular stipulates that credit institutions and foreign bank branches are allowed to consider and decide on restructuring the debt repayment period for the principal and/or interest balance of the debt based on the customer's request and the financial capacity of the credit institution or foreign bank branch. To be eligible for debt restructuring, customers must meet a number of regulations.

Specifically, customers in the above subjects have outstanding principal arising before September 7, 2024 and from lending and financial leasing activities. The obligation to repay principal and/or interest arises in the period from September 7, 2024 to December 31, 2025.

The outstanding debt of the debt with restructured repayment term is still due or overdue for up to 10 days from the payment due date, the repayment term according to the contract or agreement. Credit institutions and foreign bank branches are allowed to restructure the repayment term for the outstanding debt of the debt that is overdue for more than 10 days in the period from September 7, 2024 to the effective date of this Circular when implementing the first debt restructuring according to the provisions of this Circular.

The review of debt repayment term restructuring is carried out from the effective date of the Circular until December 31, 2025 and there is no limit on the number of times the debt repayment term can be restructured.

The final repayment date of the restructured debt balance (including debt extension) is determined in accordance with the customer's level of difficulty but not exceeding December 31, 2026.

Customers whose debts are restructured are customers who are assessed by credit institutions or foreign bank branches to be having difficulty and not being able to repay the principal and/or interest on time according to the contract or agreement in one of the following cases: Customers are affected or damaged by storm No. 3; customers' partners are affected or damaged by storm No. 3 and therefore cannot properly and fully fulfill the commitments and agreements signed with customers. In addition, customers must also be assessed by credit institutions or foreign bank branches to be able to fully repay the principal and/or interest according to the restructured repayment period.

Notably, the above regulation excludes the case of customers affected by storm No. 3 and needing time to stabilize their lives, build, and find solutions to restore production and business. The consideration of debt repayment restructuring in this case will be carried out within the first 3 months from the effective date of this Circular and the debt repayment restructuring period shall not exceed 1 year from the date of restructuring.

Explaining the above proposal, according to the drafting agency, at working sessions, credit institutions said that many customers suffered heavy losses such as losing all cages and fish, losing most of their livestock and crops... Therefore, after the natural disaster, customers need a certain amount of time to search for and rescue missing people, clean up, arrange, and repair their homes and businesses.

In addition, arranging capital to repair and restore production and business facilities, and to purchase livestock and crop breeds is also extremely difficult. Therefore, developing a business plan, financial plan, and debt repayment plan to ensure debt repayment capacity after restructuring according to current regulations on debt repayment restructuring is very difficult.

The synthesis of damage assessment and implementation of state policies (compensation for damage caused by natural disasters, debt rescheduling) also requires a lot of time to process. In fact, debt rescheduling for customers in the agricultural and rural sectors takes 6-8 months (in some cases, more than 1 year) because it must be handled at many levels in localities, ministries and submitted to the Prime Minister for consideration and decision. Therefore, the draft Circular has provisions to handle the above situation, ensuring that credit institutions can immediately implement debt restructuring support policies for customers in accordance with the law.

Source: https://nhandan.vn/xem-xet-co-cau-lai-thoi-han-tra-no-den-het-ngay-31122025-post834172.html