Circular No. 42/2024/TT-NHNN amends and supplements certain Articles of Circular No. 04/2021/TT-NHNN dated April 5, 2021, issued by the Governor of the State Bank of Vietnam on refinancing for credit institutions after providing loans to Vietnam Airlines Corporation Joint Stock Company (VACJSC) and restructuring repayment terms, maintaining risk classification groups, and provisioning for risks related to VACJSC's debts due to the impact of the COVID-19 pandemic.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 04/2021/TT-NHNN dated April 5, 2021, issued by the Governor of the State Bank of Vietnam on refinancing for credit institutions after such credit institutions have lent to Vietnam Airlines Joint Stock Company and restructuring repayment terms, maintaining the risk classification group, and provisioning for risks related to debts of Vietnam Airlines Joint Stock Company due to the impact of the COVID-19 pandemic

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to Resolution No. 135/2020/QH14 dated November 17, 2020 of the National Assembly on the 10th Session of the 14th National Assembly session XIV;

Pursuant to Resolution No. 142/2024/QH154dated June 29, 20245 of the National Assembly on the 7th Session of the 15th National Assembly; 6 day4 of the National Assembly's seventh session, session XV;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

The Governor of the State Bank of Vietnam promulgates This Circular amends and supplements certain provisions of of Circular No. 04/2021/TT-NHNN dated April 5, 2021 of the Governor of the State Bank of Vietnam stipulating refinancing for credit institutions after such credit institutions have lent to Vietnam Airlines Joint Stock Company and restructuring repayment terms, maintaining the risk classification group, and provisioning for risks related to debts of Vietnam Airlines Joint Stock Company due to the impact of the COVID-19 pandemic9.

Article 1. Amending and supplementing certain provisions of Circular No. 04/2021/TT-NHNN

2. Amending and supplementing Article 7 as follows:

"1. The Resolutions of the National Assembly are Resolution No. 135/2020/QH14 dated November 17, 2020 of the National Assembly on the 10th Session of the 14th National Assembly and Resolution No. 142/2024/QH15 dated June 29, 2024 of the National Assembly on the 7th Session of the 15th National Assembly."

2. Amending and supplementing Clause 3 of Article 7 as follows:

"3. Extension of refinancing: The refinancing loan amount is automatically extended five times at maturity for the remaining principal balance of the refinancing loan; each extension period is equal to the refinancing period; the total refinancing and extended refinancing period shall not exceed six years."

3. Amending and supplementing Clause 1 of Article 14 as follows:

"1. Department of Monetary Policy

a) The focal point for submitting to the Governor of the State Bank of Vietnam for consideration and handling applications for refinancing loans from credit institutions in accordance with this Circular;

b) The focal point for submitting to the Governor of the State Bank of Vietnam for issuing Decisions to amend and supplement Decisions on refinancing loans for credit institutions to implement the Resolutions of the National Assembly and the Government."

4. Supplementing Point d of Clause 3 of Article 14 as follows:

"d) Within two working days from the date of receipt of the Decision to amend and supplement the Decision on refinancing, the State Bank of Vietnam Trading Center and the credit institution shall review, amend, and supplement the Principle Refinancing Loan Contract."

Supplementing and replacing certain phrases in Clause 2 of Article 12 as follows:

1. Adding the phrase "restructuring repayment terms" after the phrase "credit institutions implement".

2. Replacing the phrase "as stipulated in this Circular" with the phrase "as stipulated in Clause 1 of this Article".

3. Replacing the phrase "as stipulated by the State Bank of Vietnam regarding loan classification, provisioning, and utilization for risk management in the operations of credit institutions and foreign bank branches" with the phrase "as stipulated by law".

This Circular takes effect from December 25, 2025/.

The Director of the Office, the Heads of the Department of Monetary Policy, the Inspectorate and Supervision Department, the Department of Credit for Economic Sectors, and the Heads of units under the State Bank of Vietnam, credit institutions are responsible for organizing the implementation of this Circular.

Article 4. Implementation provisions

This Circular takes effect from July 22, 2024./.