On April 2, 2021, the State Bank of Vietnam 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 governor of the State bank of Vietnam providing instructions for Credit Institutions and Foreign Branch Banks (FBBs) on debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-19 pandemic. This document takes effect from 17/5/2021. 

1. Exemption or reduction of interests and fees for enterprises at Credit Institutions and Bank Branches:

The State Bank of Vietnam directs Credit Institutions and FBBs to reduce interest and fees until December 31, 2021 for outstanding debts arising before June 10, 2020 from operating activities, credit extension, whose principal and/or interest repayment is due during the period from January 23, 2020 to January 31, 2021 and the Client is incapable of repayment on time and/or Interest under contracts, agreements on revenue, declining income due to Covid-19 pandemic. 

2. Restructuring the debt payment term at Credit Institutions and Bank Branches:

Credit Institutions and FBBs are also required to restructure the repayment period for the outstanding balance of the debts if the Clients meet the conditions such as: 

1. The debt is a loan or finance lease granted before 10/6/2020;
2. The principal and/or interest are incurred during the period from 23/01/2020 to 31/12/2021;
3. The outstanding debt may be rescheduled in the following cases:
   • The outstanding debt is undue or up to 10 days overdue according to the loan/finance lease agreement, except in the cases specified in Point b and Point c.
   • The outstanding debt is incurred before 23/01/2020 and becomes overdue during the period from 23/01/2020 to 29/03/2020.
   • The outstanding debt is incurred from 23/01/2020 and becomes overdue before 17/5/2021.
4. The Credit Institution or FBBs determines that the borrower is unable to repay the principal and/or interest on schedule under the agreement due to decrease in revenue or income caused by Covid-19 pandemic;
5. The borrower applies for debt rescheduling and the Credit Institution or FBBs has determines that the borrower is able to fully repay the principal and/or interest after the debt is rescheduled;
6. Debts that violate regulations of law shall not be rescheduled;
7. Rescheduling time (including repayment deadline extension) shall vary according to the impact of Covid-19 on the borrower and shall not exceed 12 months from the day on which the debt is rescheduled by the Credit Institution or FBBs;
8. Debt rescheduling shall be carried out until 31/12/2021.