Stop rollover loans in Vietnam

Stop rollover loans in Vietnam as per Official Letter 7059/NHNN-TTGSNH of State Bank of Vietnam

Post date: 30-09-2014

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Stop rollover loans in VietnamRollover loan is a loan where the bank allows a borrower, after a particular period of time has passed, to continue owing money after repayment date a loan where the borrower agrees to pay interest at a particular rate, and to pay back the money at a particular time.

On 26 September, 2014, State Bank of Vietnam has issued an Official Letter N7059/NHNN-TTGSNH to give some opinions with respect to rollover loan of credit institutions and foreign bank branches as follows:

 1. Credit institutions, foreign bank branches and clients enter agreement with loan term in accordance with sub-article 2 article 3 and article 10 of regulations on lending by credit institutions to clients in connection with Decision No.1627/QD-NHNN dated 31 December 2001 of State Bank of Vietnam.

 Notes:
 - Sub-article 2 Article 3: “Loan term means the period of time calculated from the date on which the client commences to receive the loan funds to the date on which principal and interest have been repaid in full as agreed in the credit contract between the credit institution and the client.”
 - Article 10 Loan term: “A credit institution and its client shall agree on a loan term based on the cycle of production or business, the period for recovery of investment project capital, the repayment capacity of the client, and the capital sources of the credit institution which are available for lending. In the case of Vietnamese and foreign organizations, the loan term shall not exceed the remaining duration of operation pursuant to the decision on establishment or operating licence in Vietnam; and in the case of foreign individuals, the loan term shall not exceed the permitted period of residence of the foreigner in Vietnam.”

2. Conducting collection of full principal and interest upon maturity as agreed in the loan agreement signed by credit institutions and foreign bank branches and clients, do not rollover all or a part of the principal.

3. If the case rollover loan was made, credit institutions and foreign bank branches must enter agreement with client for amendment of such loan agreement ensuring the consistent with provisions mentioned in point 1, 2 above.

 Similarly, some banks normally extend the loan term for new term on maturity by a loan extension agreement. It is seem similarly to be a rollover loan mentioned by this Official Letter, these banks shall collect full principal and interest upon maturity as agreed in the loan agreement, do not extend loan term for new loan term.

 In the case of a client without the ability to repay all principal and/or loan interest on the dates agreed in the loan agreement but the bank assesses the client as being able to repay within a certain specified time after the loan term, the bank may consider extending the loan term for a period consistent with the funding source for repayment of the client. The whole of the outstanding principal of a client having a restructured debt shall be classified into the appropriate debt group in accordance with regulations on classification of debts of the State Bank of Vietnam (article 22 of Decision No.1627/QD-NHNN of State Bank of Vietnam).

 On 11 June 2012, State Bank Of Vietnam issued Official Letter 3470/NHNN-TTGSNH, in which the bank is permitted to proceed with rollover loan agreements signed until State Bank of Vietnam issue new provisions of loans of the bank to client

 Finally, from signing date of aforesaid Official Letter, credit institutions and foreign bank branches in Vietnam must stop rollover loans.

 Lawyervn.net

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  • kiwi (11-11-2014) Reply
    Công văn 7059 không đưa ra định nghĩa về phương thức "cho vay tuần hoàn", cho tôi hỏi ở các văn bản pháp luật khác có nêu định nghĩa về phương thức này không? Bởi vì theo tôi nghĩ nếu NHNN không cho TCTD gia hạn thời hạn vay khi khoản vay đến hạn thì khách hàng vay vốn sẽ phải chịu lãi phạt, lãi quá hạn rất cao. Tôi cảm ơn.
    • Hoàng Đức Phú (14-11-2014)
      Hiện nay, các văn bản NHNN không có định nghĩa "cho vay tuần hoàn" theo CV 7059. Phương thức cho vay tuần hoàn hay còn gọi là cho vay tái tục rất phổ biến ở các nước gọi là "rollover loan". Dự thảo Thông tư cho vay thay thế Quyết định 1627 đã xuất hiện khái niệm này. CV 7059 không cấm gia hạn, nhưng khi gia hạn thì phải xếp hạng vào nhóm nợ phù hợp. trong khi đó cho vay tuần hoàn thì vẫn giữ nguyên nhóm nợ. CV 7059 là giải pháp tạm thời. Dự thảo quy chế cho vay mới đã xuất hiện phương thức cho vay này rồi.
  • MaryRose (02-10-2014) Reply
    Việc ngừng hoạt động roll over tại các ngân hàng thương mại trong bối cảnh nợ xấu đang ảnh hưởng xấu đến hệ thống ngân hàng là một biện pháp tốt của ngân hàng nhà nước. Tuy nhiên, tôi không rõ về bản chất roll over như được đề cập ở trên và interest resetring có gì khác nhau về bản chất ko? Xin cảm ơn.
    • Hoang Duc Phu (02-10-2014)
      Roll over và interest reseting hoàn toàn khác nhau. Roll over thực hiện theo thời hạn vay, còn interest reseting thực hiện theo kỳ hạn lãi suất (interest period). Khi roll over có thể thực hiện interest reseting. Nếu kỳ hạn lãi suất và thời hạn vay bằng nhau thì cả hai gần như giống nhau. Interest reseting có thể thực hiện theo thỏa thuận hoặc do ngân hàng quyết định, nhưng thời hạn vay thì phụ thuộc vào chu kỳ luân chuyển vốn, khả năng trả nợ của người vay.