As now we have knowledgeable, on September 7, 2021, the State Financial institution of Vietnam (SBV) formally issued Round No. 14/2021/TT-NHNN amending and supplementing a variety of articles of Round No. 01/ 2020/TT-NHNN dated March 13, 2020 of the Governor of the State Financial institution of Vietnam, stipulating that credit score establishments and overseas financial institution branches could restructure debt compensation phrases, exempt or cut back curiosity and charges, and keep debt teams as a way to Supporting prospects affected by the Covid-19 epidemic.
Specifically, probably the most distinguished characteristic of Round 14 is that the State Financial institution permits banks to increase the debt restructuring time by 6 months in comparison with the previous rules, till June 30, 2022.
After the brand new round was issued, the query arises for a lot of traders and prospects, who would be the beneficiaries?
Speaking to us, Mr. Nguyen Dinh Duong, an analyst at Pinetree Securities, mentioned that Round 14 was issued for the aim of immediately supporting the goal group of debtors of the financial institution. is being negatively affected by the COVID-19 epidemic, to not help banks to have excessive earnings within the final 2 quarters of the 12 months as some traders have commented and anticipated.
Particularly, the content material of Round 14 revolves round increasing the vary of supported prospects and increasing the instruments that banks can use to help these prospects. As for banks, Round 14 doesn’t regulate the provisioning schedule, that’s, banks will proceed to make extra deductions in line with the previous schedule, no less than 30%, 60% and 100% of the precise provision should be moreover deducted within the years 2021, 2022 and 2023.
“Right here, when you discover, the debt restructuring interval for patrons is prolonged by 6 months, till June 2022, however the financial institution’s provisioning progress stays the identical, this reinforces the evaluation. My fundamental function of Round 14 is to help prospects, not banks,” emphasised Mr. Nguyen Dinh Duong.
In fact, Pinetree’s skilled additionally identified that banks might be roughly supported “not directly” as a result of the dangerous debt information on the year-end monetary statements might be much less, and the provisioning throughout the 12 months may also be much less. than.
When requested whether or not Round 14 can have a constructive impression on banking shares, the analyst mentioned that this help just isn’t giant sufficient to grow to be a driving drive for the value of banking shares sooner or later. subsequent time.