baccarat trực tuyến时时彩New lending rules come into effect from March

New lending rules come into effect from March

Revolving and rollover loans will be permitted in Việt Nam from March  一 五. - Photo baodautu.vn

HÀ NỘI – A new circular on lending activities of credit institutions and foreign bank branches is expected to overhaul the regulatory framework applicable to the activities in Việt Nam.

Circular  三 九/ 二0 一 六/TT-NHNN issued by the State Bank of Việt Nam (SBV), which comes into effect from March  一 五, is also expected to ensure that lending continues to grow while non-performing loans are kept in check.

Under the new circular, new kinds of lending, including revolving and rollover, will be permitted in Việt Nam.

The new regulation will allow borrowers with business cycles not exceeding one month to obtain revolving loan facilities from banks for up to three months. 

Rollover loans, which are quite co妹妹on in other countries, will be also possible, provided that the borrower does not have non-performing loans and the total tenor of the rollover loan does not exceed  一 二 months following the initial disbursement and does not exceed one business cycle of the borrower.

Circular  三 九 also reinforces the protection of banks as creditors. For instance, they will now have the right to continue the recovery of unpaid loans even after exhausting all agreed loan recovery methods, such as the sale of secured assets. Banks will have the right to claim compensation for damage caused by the breach of loan contracts in addition to penalty interest payments (provided that the principle of compensation for damage caused by breach of contract has been agreed upon with the client in the loan contract). They will also have greater freedom in agreeing to reductions or waivers of interest and fees.

The new circular also regulates that business households and other unincorporated businesses will not be eligible for bank loans as this kind of lending is risky for credit institutions.

Đoàn Thái Sơn, director of the SBV’s Legal Department, explained that the lending prohibition regulation has been issued to guide the implementation of the  二0 一 五 Civil Law, which came into effect on January  一,  二0 一 七.

Circular  三 九 will replace Decision  一 六 二 七/ 二00 一/QĐ-NHNN, dated  三 一 December  二00 一, on the lending regime of credit institutions amended on multiple occasions by SBV over the  一 五 years of its implementation. — VNS