Article 3, Section 8 of Decree 94/2018/ND-CP stipulates:
Debt restructuring involves raising new capital to repay part or all of the old debt.
Article 8 of Circular 39/2016/TT-NHNN stipulates:
Credit institutions are not allowed to provide loans for the following capital needs:
– For investment and business activities in sectors and trades that are prohibited by law.
– To pay for expenses or meet financial needs of transactions or acts prohibited by law.
– To purchase goods and services in sectors and trades that are prohibited by law.
– To buy gold bars.
– To repay debt at the same credit institution, except for loans to pay interest expenses incurred during the construction of a project, where the interest expense is included in the project’s investment budget approved by competent authorities according to legal regulations.
– To repay debt at another credit institution or overseas debt, except for loans to prepay loans meeting all the following conditions:
+) The loan is for business operations.
+) The loan term does not exceed the remaining term of the old loan.
+) The loan has not been restructured in terms of repayment period.
Banks are not allowed to provide loans to repay credit at the same credit institution (debt restructuring) except for special cases. (Illustrative image)
Therefore, according to regulations, banks are not allowed to provide loans to repay credit at the same credit institution (debt restructuring), except for loans to pay interest expenses incurred during the construction of a project, where the interest expense is included in the total investment capital approved by competent authorities.
Bamboo Capital (BCG) surpasses 4,000 billion VND in revenue, reduces debt by 5,500 billion VND by 2023
The amount of debt to be paid has been reduced by more than 5,498 billion VND as the Group has actively settled all borrowings in order to lessen the cost of interest and ensure financial stability for the business.
Overcoming Challenges in Dealing with Bad Debts
In the newly passed Revised Securities Law, securities companies (SCs) no longer have the privilege to hold collateral. Therefore, SCs need to recognize that debt collection is their responsibility, and they should be extremely strict in assessing borrowers, ensuring compliance with principles, procedures, and conditions before granting loans.
Highlights of the Land Law and Credit Organizations Law in 2024
Chairman of the National Assembly Vuong Dinh Hue has recently signed the authentication of the amended Land Law and the amended Credit Organizations Law – two projects that were passed at the extraordinary 5th session of the 15th National Assembly.
