(NLDO)- The Government decided to classify assets, the level of risk provisioning... for debts of customers facing difficulties due to storm No. 3.
Deputy Prime Minister Ho Duc Phoc has just signed Decision No. 1510 dated December 4, 2024 on classifying assets, risk provisioning levels, risk provisioning methods and the use of provisions to handle risks for debts of customers facing difficulties due to the impact and damage of storm No. 3.
Decision on asset classification, risk provisioning level, risk provisioning method and use of provisioning to handle risks for debts of customers facing difficulties due to the impact and damage of storm No. 3, flooding, landslides after storm No. 3 (hereinafter referred to as storm No. 3) as follows:
Asset classification
Credit institutions and foreign bank branches are allowed to maintain the debt group for debts with principal and interest balances that have been restructured in terms of repayment terms according to the State Bank's regulations on credit institutions and foreign bank branches (CIs) restructuring debt repayment terms for customers facing difficulties due to the impact and damage of storm No. 3 as debt groups that have been classified according to the State Bank's regulations on asset classification in the operations of CIs at the most recent time before September 7, 2024 during the period of debt restructuring.
The debt is kept in the same debt group as the debt within the restructured term, the credit institution does not have to adjust or reclassify it into a debt group with a higher risk level according to the State Bank's regulations on asset classification in the operations of credit institutions.
If the debt is kept in the overdue debt group according to the restructuring period and is not further restructured or there is no outstanding debt that is restructured according to the State Bank's regulations on credit institutions restructuring debt repayment terms for customers facing difficulties due to the impact and damage of storm No. 3, the credit institution must classify the debt according to the State Bank's regulations on classifying assets in the operations of credit institutions.
Risk provision level, risk provision method
Credit institutions shall make specific provisions for customers whose debts are kept in the same debt group as follows:
Pursuant to the Government's regulations on the level of provisioning, the method of setting aside risk provisions and the use of provisions to handle risks in the operations of credit institutions, credit institutions shall set aside a specific amount of provisioning for all outstanding debts of customers according to the results of debt classification for debts that are kept in the same debt group and according to the results of debt classification for the remaining outstanding debts of customers according to the regulations of the State Bank on classification of assets in the operations of credit institutions.
Pursuant to the Government's regulations on the level of provisioning, the method of setting up risk provisions and the use of provisions to handle risks in the operations of credit institutions, credit institutions shall determine the specific amount of provisioning to be set aside for the entire outstanding debt of customers according to the results of debt classification in accordance with the State Bank's regulations on asset classification in credit institution operations without applying the retention of the debt group.
The credit institution determines the specific provision amount that must be set aside, calculated by subtracting the specific provision amount that has been set aside.
In case the specific provision amount to be set aside is determined to be positive, the credit institution shall make additional specific provision as follows: By December 31, 2024: At least 35% of the specific provision amount to be set aside.
By December 31, 2025: Additional provisions must be made to reach at least 70% of the specific reserve amount that must be additionally made.
For debts that are restructured in terms of repayment terms according to the State Bank's regulations on credit institutions restructuring debt repayment terms for customers facing difficulties due to the impact and damage of storm No. 3 before January 1, 2025, credit institutions shall make provisions in 2025 at a minimum rate of 35%.
By December 31, 2026: Additional deductions will be made to cover 100% of the specific reserve amount that must be additionally deducted.
For debts that are restructured in terms of repayment terms according to the State Bank's regulations on credit institutions restructuring debt repayment terms for customers facing difficulties due to the impact and damage of storm No. 3 before January 1, 2026, credit institutions shall make provisions in 2026 at a minimum rate of 70%.
Pursuant to the Government's regulations on the level of provisioning, the method of setting aside risk provisions and the use of provisions to handle risks in the operations of credit institutions, credit institutions shall make general provisions for all outstanding customer debts according to the results of debt classification determined according to the State Bank's regulations on asset classification in the operations of credit institutions without applying the retention of the debt group.
The Decision also clearly states: Regarding the use of reserves to handle risks and the contents of asset classification, risk provisioning level, risk provisioning method for debts of customers facing difficulties due to the impact and damage of storm No. 3 not stated in this Decision, credit institutions shall comply with the Government's regulations on the level of provisions, risk provisioning method and the use of reserves to handle risks, risk provisioning in the operations of credit institutions and the State Bank's regulations on asset classification in the operations of credit institutions.
Source: https://nld.com.vn/chinh-phu-quyet-dinh-ve-xu-ly-rui-ro-doi-voi-khoan-no-cua-khach-hang-gap-kho-khan-do-bao-so-3-196241204212046877.htm
Comment (0)