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

businesses — The Social Policy Bank has submitted a proposal to the Prime Minister to reduce lending interest rates by 2% per year for borrowers 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 Typhoon No. 11 (Typhoon Matmo).

Accordingly, the State Bank of Vietnam has directed credit institutions to alleviate difficulties for customers, such as restructuring repayment terms, waiving or reducing interest and fees for affected customers. The banking sector needs to reduce lending rates by 0.5 - 2% for 3 - 6 months on existing outstanding loans, and at the same time implement credit packages with lower-than-usual interest rates, to help people, households, and businesses in affected areas recover production.

The Social Policy Bank has submitted a proposal to the Prime Minister to reduce lending interest rates by 2% per year for borrowers in affected localities. This reduction applies to outstanding loans at the bank from October 1st to December 31st, within the allocated capital plan for interest rate differential compensation and management fees for 2025. The bank needs to review and compile the losses of its borrowers, and promptly handle risky debts to support people in overcoming the consequences of natural disasters.

The Vietnam Cooperative Alliance and provincial-level alliances are reviewing and studying options for debt restructuring and deferral 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 activities.

Local authorities are urged to promptly assess the extent of damage to houses, dikes, transportation, electricity, water, and business activities. Based on this assessment, local authorities can proactively balance resources and mobilize funding for recovery efforts.

In cases where the budget is overrun, localities shall propose solutions in accordance with regulations, and submit them to the Ministry of Finance, which will coordinate with relevant ministries and agencies to compile and present them to the Prime Minister for allocation of central government budget reserves for 2025 to provide support.

The Ministry of Finance will take the lead in allocating central government budget funds, in coordination with local authorities, to support the repair and reconstruction of housing for families whose homes have been damaged or had their roofs blown off.

Relevant ministries such as the Ministry of Education and Training and the Ministry of Health are coordinating with local authorities to urgently repair schools, classrooms, and medical facilities, and restore and stabilize learning and medical services.

The Ministries of Construction, Agriculture and Environment, along with local authorities, are making maximum use of resources to reinforce vulnerable and severely damaged sections of dikes and embankments, while restoring transportation infrastructure on key routes, especially in areas isolated by storms and floods.

In the first 10 months of the year, Vietnam was hit by 11 typhoons, profoundly affecting people's lives and production, as well as socio-economic development goals. In just 13 days (from September 22nd to October 3rd), three powerful typhoons (numbers 9, 10, and 11) created a series of consecutive natural disasters, resulting in an unprecedented "typhoon upon typhoon, flood upon flood" situation, causing widespread flooding exceeding historical levels.

Specifically, the impact of Typhoon No. 11, coupled with heavy rainfall on October 6-7, caused rapid and unprecedented flooding on rivers, inundating 239,000 houses in Thai Nguyen, Bac Ninh, Hanoi, Cao Bang, and Lang Son provinces. Thai Nguyen was the hardest hit, with nearly 200,000 houses flooded and damages exceeding 12.2 trillion 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