Restructuring VNA's debt repayment period due to COVID-19 impact until the end of 2027

(Chinhphu.vn) - Based on the request of Vietnam Airlines Corporation (VNA) and the assessment of VNA's ability to fully repay the principal and/or interest after the debt repayment period has been restructured, the credit institution shall restructure the debt repayment period for VNA's debt (including the loan period and restructured debt repayment period) within a maximum period of no later than December 31, 2027.

Restructuring VNA's debt repayment period due to COVID-19 impact

The State Bank of Vietnam issued Circular No. 16/2025/TT-NHNN amending and supplementing a number of articles of Circular No. 04/2021/TT-NHNN dated April 5, 2021 of the Governor of the State Bank of Vietnam regulating refinancing for credit institutions after credit institutions lend to Vietnam Airlines Corporation - JSC (VNA) and restructuring debt repayment terms, maintaining debt groups, and setting up risk provisions for VNA's debts due to the impact of the COVID-19 pandemic.

Restructuring debt repayment terms, debt classification and risk provisioning

Circular No. 16/2025/TT-NHNN amends and supplements Article 12 of Circular No. 04/2021/TT-NHNN on restructuring debt repayment terms, debt classification and risk provisioning. Specifically:

Based on VNA's request and assessment of VNA's ability to fully repay the principal and/or interest after the debt repayment period has been restructured, the credit institution shall restructure the debt repayment period for VNA's debt (including the loan term and restructured debt repayment period) within a maximum period of no later than December 31, 2027 (According to the provisions of Circular No. 04/2021/TT-NHNN, the date is December 31, 2024).

During the period of restructuring the repayment period for VNA's debt according to the above regulations, the credit institution shall classify the debt and set up risk provisions according to the Prime Minister 's Decision on classification of assets, risk provision levels, risk provision methods and the use of provisions to handle risks for VNA's debt due to the impact of the COVID-19 pandemic.

Additional responsibilities of the State Bank Inspectorate

Clause 2, Article 10 of Circular No. 04/2021/TT-NHNN clearly states:

Within 03 working days from the date the principal balance of the refinanced loan is greater than the principal balance of the VNA loan corresponding to that refinanced loan, the credit institution must proactively repay the refinanced loan in order from the earliest signed Debt Acknowledgment Agreement corresponding to the VNA loan, ensuring that the principal balance of the refinanced loan does not exceed the principal balance of the VNA loan (according to each VNA loan).

Circular No. 16/2025/TT-NHNN also adds Clause 4a after Clause 4, Article 14 of Circular No. 04/2021/TT-NHNN, stipulating the responsibilities of units under the State Bank. Specifically, the responsibilities of the State Bank Inspectorate are added as follows:

In case of receiving notification from a competent authority or through inspection work, discovering that a credit institution has violated the provisions of Clause 2, Article 10 of this Circular, within 03 working days from the date of discovering that the credit institution does not repay the refinancing loan, the State Bank Inspectorate shall send a written notice to the credit institution, the Transaction Office, the Monetary Policy Department, the Department of Credit for Economic Sectors, the Department of Credit Institution Management and Supervision to notify the violation, clearly identifying the content of the violation and handling measures according to the provisions of this Circular.

Inspect and handle violations according to authority of credit institutions in implementing the provisions of this Circular.

According to Circular No. 16/2025/TT-NHNN, the State Bank re-finances credit institutions after the credit institutions lend to VNA according to the Resolution of the National Assembly and the Resolution of the Government.

The maximum refinancing amount for each VNA loan shall not exceed the loan amount of each VNA loan according to the credit institution's refinancing request. The total refinancing amount for credit institutions shall be a maximum of VND 4,000 billion.

The refinancing interest rate is 0%/year, applied to the refinancing term and the refinancing extension term (if any). The interest rate applied to overdue refinancing principal is 150% of the refinancing interest rate announced by the State Bank in each period at the time the refinancing is transferred to overdue.

State Bank re-finances without collateral to credit institutions.

Wisdom

Source: https://baochinhphu.vn/co-cau-lai-thoi-han-tra-khoan-no-cua-vna-do-anh-huong-covid-19-den-cuoi-nam-2027-102250725174119448.htm