The Vietnam Banks Affiliation has simply issued Official Letter No. 305/HHNH-PLNV dated August 27, 2021 on the give opinions on the draft Round amending and supplementing Round 01/2020/TT-NHNN stipulates the rescheduling of debt compensation, exemption and discount of curiosity and charges, and retention of debt teams to help clients affected by the COVID-19 pandemic (Round 01).
The Banking Affiliation stated that that is the third modification to Round 01 associated to supporting companies and credit score establishments as a result of COVID-19 pandemic, to not point out this draft doesn’t exclude the potential of having to amend. For the fourth time, if the State Financial institution of Vietnam (SBV) depends on the Authorities’s plan and purpose to struggle the epidemic (the Authorities has developed a situation the place the entire nation can have 30,000 infections, now it has elevated greater than 10 occasions). , which exhibits that the epidemic has unpredictable developments, it’s unimaginable to set an actual goal such because the debt compensation interval), it’s needed to find out the continual modification of the Round in response to the evolution of the epidemic.
On that foundation, The Bankers Affiliation recommends amending and supplementing the essential factors equivalent to: the time is decided, the time restrict is structured to swimsuit actuality; whereas different content material must be constructed stably all through, one content material shouldn’t be modified however accompanied by many associated contents that have to be modified.
The official dispatch of the Affiliation of Analytical Banks, in Round 01 stipulating the kind of provision for structured debt and in Round 03, supplementing the suitable provisioning for dangers exhibits the security of the system. The remainder of the laws on the time of structuring and incurring debt from time a to time z are emotional primarily based on the situation in addition to the directive paperwork of the Authorities and the Prime Minister on COVID-19 prevention and management. -19. Due to this fact, it’s essential to constantly amend and complement the time along with many different associated contents as a way to complement increasingly tightly, making it tough for credit score establishments to implement.
Affiliation additionally Proposal to permit debt restructuring for bank card balances for purchasers affected by the COVID-19 epidemic, as a result of with the present development of not utilizing money, bank cards are a highly regarded type of credit score. Particularly in the course of the sophisticated improvement of the COVID-19 epidemic, it is rather needed to extend the usage of non-cash cost strategies. In reality, the variety of particular person clients utilizing bank cards has additionally been affected by the COVID-19 epidemic.
Or at Level 2, Clause 1, Article 1 (the draft Round) stipulates: “There’s an obligation to repay the principal and/or curiosity within the interval from January 23, 2020 to June 30, 2022. “. The affiliation proposes to amend the time restrict in response to Round 01 “…till Three months after the Prime Minister pronounces the top of the epidemic”.
The Banking Affiliation additionally famous: “If the State Financial institution nonetheless intends to proceed to amend the fourth time, the laws are as drafted, in the event that they hope to dwell with COVID, the laws can be till December 31, 2022 (finish of 2023). Credit score establishments have needed to make provision for 100% of their structured loans, which the State Financial institution nonetheless stipulates isn’t acceptable).
“If complying with Round 01 with further provision and dedication of debt construction earlier than January 23, 2020 to the subsequent day after Three months, the Prime Minister introduced the top of the epidemic and lend a hand as Round 01 and part of Round 03, the modification to Round solely adjusts the overdue stability till the efficient date of the Round or the amended and supplemented Round. could assign credit score establishments to make their very own choices and take duty earlier than the legislation then the SBV doesn’t have to fret about continuously amending the Round“, urged the Bankers Affiliation.
Bankers Affiliation additionally urged that the State Financial institution ought to take heed to the precise opinions of credit score establishments and of the Affiliation on the premise of summarizing members’ opinions.
In addition to, the Bankers Affiliation additionally request the State Financial institution to think about including new content material to the draft Round as:
To be able to strictly adjust to the provisions of Directive 16 for money owed of consumers within the distanced space in response to Directive 16, the State Financial institution is requested to permit credit score establishments to:
a. Defer debt compensation for purchasers till the top of 15 days after the date of announcement of termination of Directive 16, besides the place the Buyer voluntarily makes debt compensation by means of varieties equivalent to wire switch, depositing cash into the client’s account, the client’s account has sufficient stability to gather the debt;
b. The classification of deferred money owed in response to level a above shall be carried out as follows:
(i) Keep the identical debt group when:
– Prospects totally pay principal and curiosity; or
– Debt extension/restructuring by credit score establishments and clients inside 15 days from the date of termination of the implementation of Directive 16.
(ii) Switch of overdue money owed when classifying money owed by overdue date within the following instances:
– Prospects don’t totally pay principal and curiosity; or inside 15 days from the date of termination of the implementation of Directive 16;
– Credit score establishments and clients are usually not allowed to increase/restructure debt inside 15 days from the date of termination of Directive 16.
The affiliation additionally urged: “The SBV ought to report back to the Authorities the scenario of companies and credit score establishments which can be significantly affected, accompanied by a sudden improve in dangerous debt sooner or later. suggest the Authorities to situation a separate decision on eradicating difficulties for companies and credit score establishments affected by the COVID-19 epidemic“.
In case the State Financial institution primarily based on the Authorities’s Normal Decision to situation a Round associated to potential dangerous money owed sooner or later, which are literally subprime money owed however are usually not categorized as greater debt teams, it ought to system security laws (sort of accruals, 3-year danger provisioning), the remaining for the credit score establishments to determine for themselves and take duty earlier than the legislation, as a result of nobody understands clients higher than the credit score establishments themselves. .
byIf the main points are issued, dangerous debt of the entire system happens later, the promulgation of particulars within the Round isn’t helpful to the coverage issuing company., as a result of it isn’t the subjective fault of the credit score establishment (as a result of epidemic). Due to this fact, the State Financial institution ought to develop a Round to soundly handle the system in accordance with the Regulation on the State Financial institution, the remaining for the credit score establishments to be accountable in response to the Legal guidelines: Credit score establishments, civil, enterprises… (definitely sooner or later dangerous money owed can be will improve very excessive, credit score establishments are dealing with increasingly difficulties together with liquidity issues…).
The Bankers Affiliation additionally stated that the applying of all three circulars with the content material of debt restructuring as a result of influence of the COVID-19 epidemic can have many shortcomings, difficulties and will trigger authorized dangers for entities. take part within the debt restructuring course of. So when Round amendments have to be brief, straightforward to grasp, solely the principle content material must be corrected, the opposite contents shouldn’t be modified or copy the contents of the outdated Round and different contents in response to the ideas of the earlier Round. “In reality, it’s essential to appropriate Clause 1, Article 4, and Clause 2, Article Four in response to Round 01, by no means should be corrected and are usually not afraid of being taken benefit of as a result of they should make provision for Three years anyway”, the Bankers Affiliation urged. beneficial.
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