The State Bank of Vietnam (SBV) has asked commercial banks to reschedule enterprises' loans that they have not been able to pay back on time because of negative economic conditions.
The restructuring of loans will be done in accordance to Decision No 783/2005/QD-NHNN of the SBV Governor dated May 31, 2005.
Under this decision, commercial banks will have to restructure enterprises' repayment schedules based on their financial capacity, said Nguyen Thi Hong, director of the central banks' Monetary Policies Department.
Commercial banks will have to consider extending loans to borrowers currently unable to repay the principal or interest of their loans on schedule but are evaluated to have the ability to do so later, Hong told the Tuoi Tre newspaper.
The central bank has also required commercial banks to actively work with borrowers finding it difficult to repay loans so that they can access more credit and gradually restore, maintain and expand production and business.
This measure was aimed at helping commercial banks reduce bad debts and continue to extend new loans to solvent customers with effective plans and projects, she said.
The restructuring of repayment would only apply to enterprises in "temporary difficulties", she added.
The central bank will not accept credit organisations extending or suspending loans to help enterprises survive if such supporting activities violated legal regulations, Hong said.-VNA
The restructuring of loans will be done in accordance to Decision No 783/2005/QD-NHNN of the SBV Governor dated May 31, 2005.
Under this decision, commercial banks will have to restructure enterprises' repayment schedules based on their financial capacity, said Nguyen Thi Hong, director of the central banks' Monetary Policies Department.
Commercial banks will have to consider extending loans to borrowers currently unable to repay the principal or interest of their loans on schedule but are evaluated to have the ability to do so later, Hong told the Tuoi Tre newspaper.
The central bank has also required commercial banks to actively work with borrowers finding it difficult to repay loans so that they can access more credit and gradually restore, maintain and expand production and business.
This measure was aimed at helping commercial banks reduce bad debts and continue to extend new loans to solvent customers with effective plans and projects, she said.
The restructuring of repayment would only apply to enterprises in "temporary difficulties", she added.
The central bank will not accept credit organisations extending or suspending loans to help enterprises survive if such supporting activities violated legal regulations, Hong said.-VNA
