Under the directive, the Governor requires credit institutions to restructure loan repayment periods and keep loan groups on the basis of assessing the conditions for production, business and service supply, as well as the ability to repay debts; and to inspect and strictly control restructured debts to ensure that borrowers can repay the debts in accordance with restructured repayment period.
Credit institutions will not restructure the repayment period and maintain loan groups for customers that use funds for improper purposes or violate provisions of the credit agreements and related regulations.
The lenders can actively decide to restructure the repayment period on the basis of monitoring and assessing customers’ business conditions and financial strength.
Additionally, they can simultaneously reconsider interest rates in line with the financial conditions of borrowers, of credit institutions and the actual monetary market to support customers in overcoming difficulties in production and business.
They can also only restructure the repayment period and keep loan groups for clients unable to repay the principal or interest within the terms of the loan or when due, if they have new feasible business plans, and is determined that they have a better ability to repay the debts once the debt repayment period is adjusted.
At the same time, the institutions will have to promulgate internal regulations for restructuring debts to ensure unity in implementation; have internal control mechanisms to ensure control strictly and safely to prevent violations.
Besides reporting internal regulations and internal control mechanisms to the central bank, the institutions must also build and report their deployment plans and implementation commitments.
Under the directive, the Governor also requires the supervising agencies of the central bank and its branches nationwide to better monitor credit institutions to ensure they obey regulations and provide timely solutions to remove the barriers faced by lenders and borrowers. — VNS