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HCMC – The Vietnam Development Bank (VDB) is now authorized to consider and decide on waiving guarantee fees for enterprises that have undergone bankruptcy or dissolution.
This debt-relief measure, which applies to businesses that have completed full asset liquidation and legal disposal procedures, marks a significant shift in the bank’s debt-handling autonomy.
The move follows Decision No. 12/2026/QD-TTg, recently signed by Deputy Prime Minister Ho Duc Phoc to amend the 2011 regulations on loan guarantees for small and medium-sized enterprises (SMEs). The new decision establishes a revised fee structure, including a VND500,000 appraisal fee per application and an annual guarantee fee of 0.5% on the guaranteed amount.
Beyond fee waivers, the updated framework tightens the management of mandatory guarantee loans, requiring beneficiaries to sign a formal loan contract with VDB once a guarantee obligation is fulfilled. These contracts are governed by the State’s investment credit lending rates at the time of signing, with overdue interest capped at 150% of the standard rate.
VDB will also determine specific repayment schedules based on the debtor’s financial viability and perform asset re-evaluations to ensure the collateral remains sufficient.
While the bank is empowered to grant interest exemptions or reductions based on repayment capacity, the decision stipulates that the State budget will not provide subsidies or management fee compensation for such cases. Furthermore, all risk management and provisioning for these mandatory loans must align with the bank’s fiscal management standards and credit risk handling mechanisms as approved by the Prime Minister.
