The State Bank of Viet Nam (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 would 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 would 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 would not accept credit organisations extending or suspending
loans to help enterprises survive if such supporting activities violated legal
regulations, Hong said.
Several
bankers echoed Hong.
Do Minh
Toan, general director of Asia Commercial Bank (ACB), said clients had to prove
they could repay loans after they were restructured, but did not explain how
the latter would do it.
General
director Nguyen Phuoc Thanh of the Joint Stock Commercial Bank for Foreign
Trade of Viet Nam (Vietcombank) also said his bank would likely extend the
repayment period for borrowers that were facing many difficulties but required
them to show the ability to restore and develop in the future.
In
other words, Thanh said, the loan extension policy would apply only to
enterprises that had clear and effective development plans.
VNS
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