Abolish capital support, no more debt collection procedures
The State Bank of Vietnam (SBV) has just announced a draft Circular guiding a number of contents of Decree 55/2015/ND-CP on credit policies for agricultural and rural development, which has been amended and supplemented in 2018 and 2025. This draft is currently being consulted with organizations and individuals before being issued.
According to the draft, this Circular guides the restructuring of repayment terms, debt grace period, maximum deduction ratio for collateral, debt suspension, and related lending according to the provisions of Decree 55/2015/ND-CP (amended and supplemented). Other contents will be implemented according to relevant legal documents.
The Circular does not continue to regulate policies to support lending capital and debt collection procedures, because these contents are already in Circular 14/2018/TT-NHNN, Decree 55 and Decree 116/2018/ND-CP.
The subjects of application are credit institutions, foreign bank branches lending to agriculture and rural areas; customers borrowing capital according to Decree 55 (amended and supplemented); and other relevant organizations and individuals.
Debt structure is regulated more strictly, continuing to have a grace period for long-term loans
Customers who borrow agricultural and rural capital and face difficulties due to objective and force majeure reasons can have their debt repayment period restructured and keep the debt group the same. Maximum restructuring period: 12 months for short-term debt, 36 months for medium and long-term debt. Restructural debts must still be classified and risk reserves must be set aside according to current regulations.
Illustrative example in the draft: A customer borrowed 500 million VND at the end of 2025, paying principal and interest in the first 5 months of 2026. When faced with difficulties due to African swine fever, customers are given an additional repayment period of 6 months. If the deadline has not been resolved, the credit institution can continue to restructure for up to 6 more months.
In addition to the debt structure, the draft maintains the regulation on debt grace period for borrowers for planting, caring for, and replanting perennial trees. The grace period is calculated from the time of disbursement until the customer begins to repay the principal or interest, by the credit institution and the customer agreeing to suit the construction period of the crop.
Regulations on guaranteed assets and implementation responsibilities
The draft stipulates that the maximum deduction rate for collateral of agricultural and rural loans does not exceed the rate applied to loans in other fields. Credit institutions are allowed to decide on specific deduction rates for each type of asset based on their ability to recover, but must not exceed the maximum level prescribed by the State Bank.
Regarding responsibilities, credit institutions must issue unified implementation guidelines in the system; clearly identify the purpose of agricultural and rural lending in the contract; monitor credit records separately; periodically report to the State Bank on outstanding loans and debt restructuring. Units under the SBV such as the Department of Economic sectors Credit, the Department of monetary Policy, the Banking Supervisory Inspectorate and local SBV branches are also assigned specific responsibilities in advising, inspecting, supervising and coordinating the handling of arising issues.
The draft also clearly states transitional provisions, accordingly, credit contracts signed before the effective date of the Circular will continue to be implemented according to the signed agreement, or can be amended and supplemented accordingly. Regarding the effectiveness, the new Circular will replace Circular No. 10/2015/TT-NHNN and Circular No. 25/2018/TT-NHNN.
