Headlines 26/05/2022 16:05 CH

Methods of interest subsidy from commercial banks for enterprise and household business loans in Vietnam

Trung Tài

On May 20, 2022, the Governor of the State Bank of Vietnam promulgated Circular No. 03/2022/TT-NHNN elaborating Decree No. 31/2022/ND-CP on interest subsidies for enterprise, cooperative and household business loans.

According to the Circular, a commercial bank may choose to provide interest subsidies to its borrowers using one of the following methods:

- Direct deduction of the subsidized loan interest from the loan interest payable by the borrower.

- Collection of the entire loan interest in a loan period and reimbursement of the subsidized loan interest on the same day.

In case loan interest in the loan period is collected after working hours of the commercial bank, the subsidized loan interest may be reimbursed on the next day.

Circular No. 03/2022/TT-NHNN of the State Bank of Vietnam comes into force from May 20, 2022.

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