A residential space in Hanoi (Photograph: VNA)Hanoi (VNS/VNA) – The State Financial institution of Vietnam (SBV) has just lately issued
two circulars to help companies and the actual property market specifically.
The central financial institution on April 24 issued Round No 02/2023/TT-NHNN that gives
directions for banks on debt rescheduling and retention of debt classes to
help debtors of enterprise and client loans. Beneath the round, banks are
permitted to defer debtors’ money owed till June 30, 2024.
Based on the SBV, the transfer is aimed to implement the directive of the
Authorities in Decision No 50/NQ-CP 2023 and Decision No 59/NQ-CP 2023.
Based on the round, a financial institution will take into account rescheduling principal and/or
debt pursuits on the premise of debtors’ requests, the monetary capability of
the financial institution and compliance with the next rules.
First, money owed which might be rescheduled and have debt classes retained are
principal of loans granted earlier than April 24, 2023, and from lending and finance
lease.
In addition to, the principal and/or curiosity must be paid inside the interval from
April 24, 2023 to June 30, 2024 and rescheduling time shall be determined by the
banks and won’t exceed 12 months from the due date of the excellent debt to
be rescheduled.
The debt rescheduling in keeping with Round No 02/2023/TT-NHNN shall be
carried out from April 24, 2023 to June 30, 2024, and the SBV authorises banks
to proactively take into account, assess debtors’ difficulties, and resolve on the
rescheduling of their money owed.
Based on the SBV, the coverage on the rescheduling of debt fee and debt
class retention in keeping with Round No 02/2023/TT-NHNN prolongs the financial institution
mortgage deferral durations that can straight contribute to partially eradicating
difficulties of individuals and enterprises.
The coverage additionally permits enterprises and folks to proceed to reinvest and
receive new enterprise loans and client loans, thereby contributing to the
improvement of manufacturing and selling financial improvement in keeping with the
Authorities’s set goals of 2023 and the entire 2021-25 interval.
Analysts from Viet Capital Securities Firm (VCSC) stated Round 02 relies
on the debt restructuring mechanism that was used and demonstrated effectivity
throughout the COVID-19 pandemic.
“Round 02 goals to help all sectors of the financial system as clients who’re
dealing with difficulties can receive entry to different financial institution loans to take care of their
regular enterprise. Nevertheless, we predict the true property sector could possibly be one of many
largest beneficiaries because it now has instruments to unfold out difficulties over
a number of years to resolve points, which can assist to keep away from the collapse of
corporations — particularly actual property builders — that might result in systematic
threat. As for banks, the convenience on strain for patrons — particularly actual property
builders — will even assist to ease the strain on banks, which might result in
decrease credit score prices,” the analyst stated in a latest report.
VNDirect Securities Firm (VDSC) additionally stated Round 02 has a constructive influence
on each companies and banks. Due to the round, the strain of
provisioning shall be minimised when the restructured money owed are provisioned in
two years of 2023 and 2024.
The round will positively affect the buyers’ sentiment in the direction of banks,
similar to Techcombank, Army Financial institution, VPBank and HDBank, which have a excessive
proportion of actual property and client loans of their credit score construction.
On the identical day, the SBV additionally promulgated Round No 03/2023/TT-NHNN
suspending the validity of Clause 11, Article 4 of Round No 16/2021/TT-NHNN
on company bond buying and selling of credit score establishments and overseas financial institution branches from
April 24, 2023 to December 31, 2023.
Consultants stated the company bond market shall be partially eased as Round 03
frequently permits banks to purchase unlisted company bonds.
The round will enable banks to actively and flexibly purchase again bonds from
particular person buyers, which can assist enhance market liquidity, scale back bond
maturity strain and enhance the market-making function of banks, the specialists
stated.
Nguyen Quang Thuan, chairman of economic information supplier FiinGroup, stated the brand new
regulation makes probably the most sense for banks within the context that the strain to
purchase again bonds has just lately elevated when buyers have requested to repay
earlier than maturity.
The regulation will take away the strain that some banks are dealing with as a result of they
distributed the bonds to buyers whereas the bond’s issuer faces difficulties
in money circulate and can’t redeem.
Nevertheless, Le Hoang Chau, Chairman of HCM Metropolis Actual Property Affiliation, stated that
Round 03 nonetheless doesn’t enable banks to purchase company bonds that companies problem
to reverse money owed.
As well as, the suspension interval of the regulation is simply eight months which
is simply too brief and never sufficient for the company bond market to beat difficulties,
Chau stated.
Due to this fact, Chau proposed the SBV to proceed to abolish the regulation that
prohibits banks from shopping for company bonds issued with the intention of restructuring
the issuer’s money owed./.