On April 23, 2023, the State Bank issued Circular No. 02/2023/TT-NHNN regarding credit institution restructuring, foreign bank branches restructuring repayment terms, and maintaining debt groups to support clients in financial difficulty ("Circular 02"). In which, the State Bank allows credit institutions to restructure repayment terms for financially distressed clients with principal debts incurred before the effective date of Circular 02 and obligations for principal and/or interest payments arising from the effective date of Circular 02 until June 30, 2024. These debts can be restructured with new terms not exceeding 12 months from the due date. The restructuring process for clients will be implemented until June 30, 2024.
To further support resolving difficulties for borrowers, on June 18, 2024, the State Bank issued Circular No. 06/2024/TT-NHNN amending and supplementing certain provisions of Circular 02 concerning credit institution restructuring, foreign bank branches restructuring repayment terms, and maintaining debt groups to support clients in financial difficulty ("Circular 06"). Specifically:
- Applicable subjects: Principal and/or interest debts incurred during the period from the effective date of Circular 02 until December 31, 2024.
- Application term: Until December 31, 2024.
Circular 06 takes effect from June 18, 2024.
Comment: