To: Credit Institutions

With the view to facilitating conditions for the implementation of the Decision No. 688/2002/QD-NHNN on the carrying over of overdue debts dated 1 July, 2002 and the Decision No. 1627/2002/QD-NHNN dated 31 December, 2002 of the Governor of the State Bank in accordance with provisions of applicable laws and actual conditions of credit activities, the State Bank issued some documents guiding the carrying over of overdue debts in first months of the year 2002.

In respect of borrowing customers who are likely to delay the repayment of principals or payment of loan interests in comparison with the repayment period agreed upon in the credit contract, the carrying over of overdue debts shall be performed as follows:

1. Credit institutions and borrowing customers may agree in the credit contract, if borrowing customers fail to repay fully principals or loan interests after ten working days at the maximum from the due date and fail to submit a written request for the adjustment of repayment period, debt extension, credit institutions shall classify the unpaid principal of that credit contract as overdue debts.

2. Incase where a credit contract does not contain any agreement as mentioned in point 1 above, credit institutions shall be entitled to decide on the classification of the unpaid principal under that contract as overdue, if borrowing customers fail to repay in full principals or loan interests and fail to submit a written request for the adjustment of the payment period or debt extension after ten working days at the maximum from the due date.

FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Tran Minh Tuan

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