Decision No. 783/2005/QD-NHNN Regarding the amendment and supplementation of Clause 6, Article 1 of Decision No. 127/2005/QD-NHNN dated February 3, 2005, of the Governor of the State Bank of Vietnam on amending and supplementing certain provisions of the Regulation on loans by credit institutions to customers issued pursuant to Decision No. 1627/2001/QD-NHNN dated December 31, 2001, of the Governor of the State Bank of Vietnam.

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding the amendment and supplementation of Clause 6, Article 1 of Decision

No. 127/2005/QĐ-NHNN dated February 3, 2005 of the Governor of the State Bank on amending and supplementing certain provisions of the Credit Lending Regulation for customers issued pursuant to Decision No. 1627/2001/QĐ-NHNN dated December 31, 2001 of the Governor of the State Bank

Amending and supplementing Clause 6, Article 1 of Decision No. 127/2005/QĐ-NHNN dated February 3, 2005 of the Governor of the State Bank on amending and supplementing certain provisions of the Credit Lending Regulation for customers issued pursuant to Decision No. 1627/2001/QĐ-NHNN dated December 31, 2001 of the Governor of the State Bank as follows:

"Article 22. Restructuring of Repayment Terms

1. Credit institutions shall decide on restructuring repayment terms based on their financial capacity and the assessment of the borrower's ability to repay:

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Organizations 1997; the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;

Pursuant to the Law on Issuing Legal Normative Documents 1996; the Law Amending and Supplementing Certain Provisions of the Law on Issuing Legal Normative Documents 2002;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to the proposal of the Director of the Monetary Policy Department,

Pursuant to …;

Article 1. a) If the borrower is unable to repay the principal and/or interest within the agreed loan term in the credit contract and the credit institution assesses that the borrower has the ability to repay in subsequent periods, the credit institution may consider adjusting the repayment terms for the principal and/or interest.

b) If the borrower is unable to fully repay the principal and/or interest within the agreed loan term in the credit contract and the credit institution assesses that the borrower has the ability to repay within a certain period after the loan term, the credit institution may consider extending the debt with a suitable term corresponding to the borrower's source of repayment.

The entire outstanding principal balance of the borrower with restructured repayment terms shall be classified into appropriate loan categories according to the classification regulations of the State Bank of Vietnam.

2. Credit institutions must issue regulations on restructuring repayment terms in accordance with the regulations of the State Bank of Vietnam; the delegation and authorization to branches to decide on restructuring repayment terms must ensure that the head office promptly, fully, and accurately grasps all restructured debts within the system. Credit institutions must submit their regulations on restructuring repayment terms to the Inspectorate of the State Bank immediately upon issuance.

3. For loans with restructured repayment terms, credit institutions must report in accordance with the reporting and statistical system regulations of the State Bank of Vietnam applicable to credit institutions."

This Decision takes effect fifteen days after its publication in the Official Gazette.

The Director of the Office, Heads of the Legal Department, Monetary Policy Department, and Heads of units under the State Bank, Directors of provincial and centrally-administered city branches; Boards of Directors and General Managers (Directors) of credit institutions are responsible for implementing this Decision./.

3. For restructured debt repayment terms, credit institutions must report in accordance with the regulations of the State Bank of Vietnam on the reporting and statistical system applicable to credit institutions.

Article 2. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 3. The Head of the Office, the Heads of the Legal Department and the Monetary Policy Department of the State Bank of Vietnam, the Directors of provincial and centrally-administered city branches, the Management Boards and General Directors (Directors) of credit institutions are responsible for implementing this Decision./.