New information for bank borrowers affected by Typhoon No. 3.

TPO - On December 10th, the State Bank of Vietnam issued a Circular stipulating that credit institutions and branches of foreign banks must restructure the repayment period for customers who were negatively affected and suffered losses due to Typhoon No. 3.

TPO - On December 10th, the State Bank of Vietnam issued a Circular stipulating that credit institutions and branches of foreign banks must restructure the repayment period for customers who were negatively affected and suffered losses due to Typhoon No. 3.

To support people and businesses in 26 localities affected by Typhoon No. 3 and subsequent natural disasters, the State Bank of Vietnam issued Circular No. 53 regulating the restructuring of loan repayment terms and maintaining the same loan classification for customers.

The circular clearly states that credit institutions and branches of foreign banks may consider restructuring the principal and interest balances of loans and financial leases with principal balances incurred before September 7, 2023, and with repayment obligations arising from September 7, 2024, to December 31, 2025.

New information for bank borrowers affected by Typhoon No. 3 (image 1)

Typhoon No. 3 caused severe damage in Quang Ninh and Hai Phong (photo: Hoang Duong).

The outstanding debt considered for restructuring is either within the agreed payment due date or overdue by no more than 10 days from the agreed payment due date. However, to support customers in recovering from the aftermath of the storm, the circular allows for the first-time consideration of restructuring for outstanding debt overdue by more than 10 days during the period from September 7, 2024, until 10 days from the effective date of this circular.

Furthermore, information from the operator indicates that debt restructuring will be carried out until December 31, 2025, and there is no limit to the number of times the restructuring can be done.

The State Bank of Vietnam also requires credit institutions and branches of foreign banks to classify loans and make provisions for risk reserves for loans whose repayment terms have been restructured.

This policy not only reduces financial pressure but also helps customers access new loans, restore production and business, and stabilize their lives.

The State Bank of Vietnam affirmed that it will continue to implement practical support measures to help the economy overcome difficulties and ensure social welfare.

Previously, after Typhoon No. 3 passed, the State Bank of Vietnam sent a document to the leaders of credit institutions and the directors of State Bank branches in provinces and cities regarding the implementation of solutions to support customers in overcoming the consequences caused by Typhoon No. 3.

The State Bank of Vietnam requires credit institutions to direct their branches and transaction offices to proactively review and compile the losses of customers who have borrowed capital in order to promptly apply support measures and alleviate difficulties (such as restructuring repayment terms; considering waiving or reducing interest rates, and continuing to provide new loans to restore production and business after the storm).

TPO - On December 10th, the State Bank of Vietnam issued a Circular stipulating that credit institutions and branches of foreign banks must restructure the repayment period for customers who were negatively affected and suffered losses due to Typhoon No. 3.

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