State Bank of Vietnam has issued Directive No. 02/CT-NHNN on strengthening credit operations and implementing the policy on rescheduling debt repayments, maintaining debt classifications, in accordance with Circular No. 02/2023/TT-NHNN dated 23/04/2023. Directive No. 02/CT-NHNN takes effect on 23/05/2023.
For units at the SBV’s central headquarters, the Governor requires them to: (i) monitor credit institutions’ implementation of the policy on rescheduling debt repayments and maintaining debt classifications to support customers facing difficulties; regularly report implementation results to the SBV’s Board of Management; and promptly propose solutions to difficulties and obstacles arising during implementation.
(ii) Inspect and supervise credit institutions’ rescheduling of debt repayments and maintenance of debt classifications for customers facing difficulties in accordance with regulations; and (iii) strengthen communications on the policy so that individuals and businesses clearly understand and can promptly access policy information.
PREVENTING POLICY ABUSE
The Governor assigned provincial and municipal branches of the State Bank of Vietnam to direct credit institutions and their branches in their respective localities to strictly implement the policy on rescheduling debt repayments and maintaining debt classifications to support customers facing difficulties under Circular No. 02/2023/TT-NHNN.
They must coordinate with media agencies, local departments and authorities, socio-political organizations, associations, and credit institutions to strengthen information dissemination and communication on the debt-rescheduling and debt-classification-maintenance policy; and promote bank–business connection activities to improve the policy’s effectiveness.
They must inspect and supervise compliance with regulations on rescheduling debt repayments and maintaining debt classifications in their localities; and take prompt, strict action against cases of non-compliance with Government policies or SBV regulations, evasion, delayed processing, deliberate obstruction or inconvenience, or refusal to reschedule debt repayments and maintain debt classifications for eligible customers. At the same time, they must monitor, supervise, and address cases in which the policy is exploited for improper gain.
They must monitor the implementation and results of debt repayment rescheduling and debt classification maintenance by credit institutions and their branches in their localities, and report to the State Bank of Vietnam, through the Credit Department for Economic Sectors and the Banking Supervision Agency, in accordance with regulations.
They must continue to monitor, gather information, and assess the difficulties faced by individuals and businesses in their localities, as well as local implementation results of the debt-rescheduling and debt-classification-maintenance policy. They must coordinate with relevant agencies to address issues within their authority and promptly report or propose measures to the provincial or municipal People’s Committee and the Governor of the State Bank of Vietnam for matters beyond their authority.
STRICT ACTION AGAINST UNITS AND INDIVIDUALS DELAYING CUSTOMER DEBT RESTRUCTURING
The State Bank of Vietnam requires credit institutions to urgently issue and immediately implement internal regulations on rescheduling debt repayments and maintaining debt classifications in accordance with Circular No. 02/2023/TT-NHNN. Any acts that create difficulties or inconvenience, or impose additional conditions or procedures beyond those stipulated in Circular No. 02/2023/TT-NHNN, are strictly prohibited.
Chairpersons of Members’ Councils or Boards of Directors, and Chief Executive Officers of credit institutions, shall directly oversee the implementation of debt repayment rescheduling and debt classification maintenance under Circular No. 02/2023/TT-NHNN. They shall be accountable to the Governor of the State Bank of Vietnam for implementation results and must strictly address units and individuals that delay implementation, deliberately create difficulties, act irresponsibly, or fail to comply with regulations.
Credit institutions must strengthen communications and publicly disclose the dossiers and procedures for debt repayment rescheduling and debt classification maintenance so that customers can access information and fully understand the policy. They must promptly address customers’ issues relating to dossiers and procedures, facilitate completion of required documentation, and enable eligible customers to access support measures as soon as possible.
They must implement the policy on rescheduling debt repayments while maintaining debt classifications in accordance with regulations; closely monitor implementation to ensure safety; and prevent and deter collusion or abuse of the policy for improper gain.
They must classify debts, make risk provisions, and account for accrued interest in full compliance with applicable law.
They must promptly and fully report results of debt repayment rescheduling and debt classification maintenance in accordance with SBV regulations and guidance.
They must proactively address difficulties and obstacles within their systems, and promptly report to and propose measures to the State Bank of Vietnam, relevant ministries and agencies, and provincial or municipal People’s Committees for matters beyond their authority during implementation.
Source: SBV, VnEconomy
