Government orders up to 2% interest rate cut for customers affected by Typhoon Matmo

business — The Vietnam Bank for Social Policies submitted to the Prime Minister a decision to reduce lending interest rates by 2% per year for customers borrowing capital in affected localities.

The Government issued Resolution No. 347/NQ-CP dated October 24, 2025 on key tasks and solutions to urgently overcome the consequences of natural disasters after storm No. 11 (storm Matmo).

Accordingly, the State Bank directed credit institutions to resolve difficulties for customers such as restructuring debt repayment terms, exempting and reducing interest and fees for customers who have suffered losses. The banking sector needs to reduce loan interest rates by 0.5 - 2% for 3 - 6 months on existing outstanding loans, and at the same time deploy credit packages with lower interest rates than usual, so that people, business households and enterprises in affected areas can recover production.

The Vietnam Bank for Social Policies has submitted to the Prime Minister a decision to reduce lending interest rates by 2% per year for customers borrowing capital in affected localities. The interest rate reduction applies to loans with outstanding debt at this bank from October 1 to December 31, ensuring that it is within the scope of the capital plan to compensate for interest rate differences and management fees assigned in 2025. The bank needs to review and summarize the losses of customers borrowing capital, promptly handle risky debts, and support people to overcome the consequences of natural disasters.

The Vietnam Cooperative Alliance and provincial-level alliances review and study plans to defer and extend debt for loans from the Vietnam Cooperative Development Support Fund and provincial-level support funds. New loans should be considered to enable cooperatives to restore production and business.

At the local level, the authorities are required to urgently determine the extent of damage to houses, dykes, traffic, electricity, water, and production and business activities. From there, the locality can proactively balance resources and mobilize funding for recovery.

In case of exceeding the balancing capacity, localities shall propose according to regulations, send to the Ministry of Finance to preside, coordinate with relevant ministries and branches to synthesize, and submit to the Prime Minister to arrange the central budget reserve for 2025 for support.

The Ministry of Finance shall preside over and arrange central budget sources, in coordination with localities, to support the repair and construction of new houses for households whose houses are damaged or have lost their roofs.

Relevant ministries such as Education and Training and Health coordinate with localities to urgently repair schools, classrooms, and medical facilities, restore and stabilize learning and medical examination and treatment activities.

The Ministries of Construction, Agriculture and Environment, and local authorities will use maximum resources to reinforce weak and severely damaged dikes and embankments, and restore traffic infrastructure on key routes, especially in residential areas isolated after storms and floods.

In the first 10 months of the year, Vietnam suffered 11 storms, which had a profound impact on people's lives, production and socio-economic development goals. In just 13 days (from September 22 to October 3), three strong storms No. 9, 10 and 11 created a chain of natural disasters, causing a rare situation of "storm on storm, flood on flood", causing floods exceeding historical levels on a large scale.

In terms of the impact of storm No. 11 alone, heavy rainfall on October 6-7 caused floods on rivers to rise rapidly and exceed historical levels, inundating 239,000 houses in Thai Nguyen, Bac Ninh, Hanoi, Cao Bang, and Lang Son. Thai Nguyen was the most severely damaged province, with nearly 200,000 houses flooded, causing damage of more than 12,200 billion VND.

Source: https://baohaiphong.vn/chinh-phu-yeu-cau-giam-toi-2-lai-vay-cho-khach-hang-bi-anh-huong-boi-bao-matmo-524645.html