Decision No. 783/2005/QD-NHNN of May 31, 2005, on the amendment, supplement of paragraph 6, article 1 of the Decision No. 127/2005/QD-NHNN dated 3 February 2005 of the Governor of the State Bank on the amendment, supplement of several articles of the regulation on lending by credit institutions to customers i........

DECISION

ON THE AMENDMENT, SUPPLEMENT OF PARAGRAPH 6, ARTICLE 1 OF THE DECISION NO. 127/2005/QD-NHNN DATED 3 FEBRUARY 2005 OF THE GOVERNOR OF THE STATE BANK ON THE AMENDMENT, SUPPLEMENT OF SEVERAL ARTICLES OF THE REGULATION ON LENDING BY CREDIT INSTITUTIONS TO CUSTOMERS ISSUED IN CONJUNCTION WITH THE DECISION NO. 1627/2001/QD-NHNN DATED 31 DECEMBER 2001 OF THE GOVERNOR OF THE STATE BANK

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam in 1997; the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam in 2003;
- Pursuant to the Law on Credit Institutions in 1997; the Law on the amendment, supplement of several Articles of the Law on Credit Institutions in 2004;
- Pursuant to the Law on the issuance of legal documents in 1996; the Law on the amendment, supplement of several Articles of the Law on the issuance of legal documents in 2002;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for the function, assignment, authority and organizational structure of the State Bank of Vietnam;
- Upon the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1. To amend, supplement Paragraph 6, Article 1 of the Decision No. 127/2005/QD-NHNN dated 3 February 2005 of the Governor of the State Bank on the amendment, supplement of several Articles of the Regulation on the lending by credit institutions to customers issued in conjunction with the Decision No. 1627/2001/QD-NHNN dated 31 December 2001 of the Governor of the State Bank as follows:

Article 22. Restructuring of repayment period

1. Credit institutions shall, based on their financial capacity and their valuation of the repayment ability of borrowing customers, make decision by themselves on the restructuring of the repayment period.

a. If a customer fails to duly repay the loan principals and/or interests within the lending period agreed in the credit contract and is assessed by the credit institutions as being able to repay in the following periods, credit institutions shall consider the adjustment of repayment period of loan principals and/or interests.

b. If a customer fails to repay in full the loan principals and/or interests on the due date agreed in the credit contract and is assessed by the credit institutions as being able to repay in a certain period of time after the term of lending, credit institutions shall consider the debt rescheduling with the period in line with repayment source of customer.

The entire outstanding principals of customers whose debts repayment period is restructured shall be classified into appropriate debt groups in accordance with applicable provisions on debt classification of the State Bank.

2. Credit institutions must issue provisions on the restructuring of repayment period in line with provisions of the State Bank of Vietnam; the decentralization, delegation of authority to their branches to make decision on the restructuring of the repayment period must ensure the Head office of the timely, full and accurate understanding of loans, the repayment period of which is restructured, for the entire system. Credit institutions shall send their regulation on the restructuring of the repayment period to the State Bank Inspection right after its issuance.

3. For borrowed loans the repayment period of which is restructured, credit institutions must make report in accordance with provisions of the State Bank of Vietnam on the statistic reporting regime applicable to credit institutions.

Article 2. This Decision shall be effective after 15 days since its publication in the Official Gazette.

Article 3. The Director of the Administrative Department, the Director of the Legislation Department, the Director of the Monetary Policy Department and Heads of units of the State Bank, General Managers of the State Bank's branches in provinces, cities under the central Governments management, the Board of Directors and General Directors (Directors) of Credit Institutions shall be responsible for the implementation of this Decision.