Interest collection will be suspended until December 31, 2024.

The Vietnam Bank for Social Policies (VBSP) announced that it will temporarily suspend interest collection for borrowers affected by Typhoon No. 3 and the subsequent floods until December 31st.

Mr. Huynh Van Thuan, Deputy General Director of the Vietnam Bank for Social Policies (VBSP), said that based on the extent of damage to capital, assets, and people of borrowers, the VBSP branch that provided the loan will urgently complete the process of establishing dossiers to request the handling of risky debts according to current regulations to submit to competent authorities for timely decision on handling risky debts, in order to create conditions for affected borrowers to overcome the consequences of natural disasters, stabilize their lives, and quickly restore production and business.

The Vietnam Social Policy Bank (NHCSXH) also extends and adjusts loan repayment terms for loans due for repayment (implemented for loans with due dates from September 2024). The usual maximum term is 12 months for short-term loans and a maximum of half the loan term for medium and long-term loans.

“Based on the consolidated borrowing needs of localities, the Vietnam Bank for Social Policies (VBSP) will develop a plan to supplement the credit growth target for 2024, balance the capital sources for implementation, and report to the Ministry of Planning and Investment and the Ministry of Finance , for submission to the Prime Minister for consideration and decision in October 2024. It is expected that an additional 4,900 billion VND will be proposed,” Mr. Thuan said.

Many policies were proactively introduced.

At the State Bank of Vietnam's conference on implementing banking credit solutions to support businesses and people affected by Typhoon No. 3 on September 20th, Ms. Ngo Thu Ha, General Director ofSHB Bank, stated that the bank is implementing a program to support existing customers by reducing interest rates by an average of 50% from September 1st to December 31st.

Especially for customers who have suffered heavy losses and are having difficulty restoring production, depending on the extent of the damage, SHB may waive 100% of the interest payable during the aforementioned period. The estimated amount of interest waived for customers is over 30 billion VND.

At the same time, SHB is providing a credit package worth VND 2,000 billion with interest rate support of only 4.5% for new loans, until December 31st, to provide capital to help customers rebuild and recover production and business. The maximum support period is 6 months.

SHB continues to review affected customers to provide support packages tailored to each industry and business sector. The bank also restructures repayment terms and maintains the same loan classification based on customer requests and SHB's assessment of the customer's repayment capacity...

VietinBank announced a reduction in lending interest rates for an expected loan balance of up to VND 100,000 billion, to support customers in quickly stabilizing their lives and production and business activities.

Specifically, all businesses and individuals affected by Typhoon Yagi will receive interest rate reductions of up to 2% per year, depending on the purpose and term of their loans. This support policy applies to both existing and new loans until December 31st. The total support package amounts to 100,000 billion VND.

On behalf of Agribank, Mr. Pham Toan Vuong, General Director, stated that in the areas affected by Typhoon No. 3, Agribank has 75 branches with a total outstanding loan balance to the economy of nearly 640,000 billion VND, of which loans to agriculture and rural areas in these regions account for nearly 54% (nearly 342,000 billion VND).

According to Mr. Vuong, preliminary statistics show that 60 out of 75 branches in 25 provinces and cities have suffered losses. This includes nearly 15,000 bank borrowers with an estimated outstanding loan balance of over 30,000 billion VND affected, and an estimated loss of nearly 11,000 billion VND.

Regarding the interest rate reduction program to support borrowers affected by Typhoon No. 3, for loans with outstanding balances on the balance sheet, Agribank will adjust interest rates by 0.5-2% per year and waive 100% of overdue and late payment interest based on the extent of damage suffered by customers affected by Typhoon No. 3 and floods during the period from September 6th to December 31st; and reduce interest by 0.5% per year for loans incurred from September 6th to December 31st.

According to Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, the support programs offered by banks have been very positive, reflecting the principle of providing more support to those in need, while also proactively introducing new lending policies, reducing interest rates on existing loans and new loans; many small-scale banks have also participated very actively…

The Deputy Governor stated that the banking sector's guiding principle reflects a spirit of sharing the difficulties faced by people and businesses after the storms and floods. Commercial banks, using their own profits, are striving to reduce costs to waive or reduce loan interest, freeze debts, and restructure repayment terms. Depending on their capabilities, banks are implementing appropriate support programs, providing timely and targeted assistance, and standing alongside their customers.