05 INSTANCES IN WHICH RISKS OF SMALL AND MEDIUM-SIZED ENTERPRISES WILL BE CONSIDERED AND HANDLED

Under Circular No. 57/2019/TT-BTC issued by Ministry of Finance on 26/8/2019 and coming into effect on October 15, 2019:

–    Accordingly, risks faced by small and medium-sized enterprises are considered and handled in the following 05 cases:

• Their customers suffer from damages to their finance and properties due to natural disasters, droughts, plagues, fires, political risks, wars that affect their operation, production and business, which in turn render them unable to pay their loans (principal and interest) on time in accordance with their signed contract of indebtedness.
• Their customers are bankrupt in accordance with current laws.
• Changes in policies brought about by the State affect their customers’ production and business activities, rendering them unable to pay their loans (principal and interest) on time in accordance with their signed contract of indebtedness.
• Their customers are at risk due to other objective elements which directly affect their production and business activities, leading to customers being unable to pay their loans (principal and interest) on time in accordance with their signed contract of indebtedness.

– Their customers have non-performing loans (from Categories 3 to 5) according to results of debt classifications stipulated by Clause 1 Article 36 of Decree No. 34/2018/ND-CP of the Government.

Best regards,