Hai Duong has 8.64% of total outstanding debt due to customers suffering damage due to storm No. 3

This information was announced by Deputy Governor of the State Bank of Vietnam Dao Minh Tu on the afternoon of September 20 at a conference to deploy solutions to support businesses and people affected by storm No. 3.

The Deputy Governor also said that localities with large outstanding debts include: Yen Bai accounts for 18.55% of total outstanding debts in the area, Hai Phong accounts for 10.65%, Quang Ninh accounts for 7%, Hai Duong accounts for 8.64%...

17 banks have announced support programs for individual and corporate customers affected by storm No. 3. In addition to debt restructuring and deferral policies, most banks have reduced lending interest rates on existing and new loans, generally by 1-2%. Some banks have reduced current interest rates by up to 50% for customers affected by storms and floods.

The Deputy Governor said that it is necessary to provide timely, synchronous, and targeted support, proactively handle the situation, not let customers have to make requests, properly implement commitments, publicly and transparently implement policies, and not take advantage of policies...

Speaking at the meeting, State Bank Governor Nguyen Thi Hong said that storm No. 3 is the strongest storm in the past 70 years on land, a super storm with great destructive power and wide impact, with 26 localities severely affected.

The storm has had a direct impact on the economy. According to statistics as of September 17, the damage to the economy was over 50,000 billion VND, and is expected to reduce economic growth by 0.15%. These days, the storm and flood have passed, but there are still many images of localities struggling to stabilize people's lives.

Governor Nguyen Thi Hong said that the State Bank has taken urgent and drastic action, immediately issuing a document requesting credit institutions to proactively review outstanding debts affected by storm No. 3, proactively implementing solutions such as interest exemption and reduction, debt extension and deferral, etc., in coordination with localities to support businesses and people.

A representative of Tien Phong Commercial Joint Stock Bank (TPBank) said that it has allocated more than VND 2,000 billion to support individual customers with a reduction of up to 50% of current interest rates, and this preferential interest rate will be kept fixed until January 31, 2025 at the latest. Similar to corporate customers, TPBank also allocated VND 2,000 billion; of which VND 1,200 billion supports interest rates for existing customers and VND 800 billion for new borrowers with a maximum interest rate reduction of up to 2%.

At the Military Commercial Joint Stock Bank (MB), depending on the level of damage, financial capacity... of the customer, MB reduces interest rates by up to 2% for existing customers; in which, for long-term loans, the reduction is from 1 - 2%/year, short-term loans are reduced from 0.5 - 1%/year, applied from today (September 20) until the end of 2024. In addition, MB also added 7,000 billion VND to the new loan package for individual customers, increasing the package size to 9,000 billion VND, with interest rates reduced by 1% compared to the normal interest rate.

A representative of the Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) estimated that there were nearly VND2,000 billion in outstanding loans and 500 customers who suffered losses after the storm. HDBank has proactively worked directly with customers from its headquarters to its units in 26 northern provinces to extend and postpone debt. In addition to debt restructuring, HDBank has also implemented a VND10,000 billion package to support interest rate reduction, including: VND3,000 billion in interest rate reduction for existing customers and VND7,000 billion in new loans, focusing on small and medium-sized enterprises (SMEs) and individual customers.

Leaders of four state-owned commercial banks also said they have reduced interest rates by 0.5 - 2% for customers.

Vietcombank proactively reduced interest rates by up to 2% for all customers who suffered heavy damage due to storm No. 3 without having to wait for customers to submit a request. The total outstanding loan support is about 160,000 billion VND.

The Bank for Agriculture and Rural Development (Agribank) has proactively reduced interest rates for 100% of affected customers, and will not collect late payment interest. According to Mr. Pham Toan Vuong, General Director of Agribank, it is expected that the existing outstanding debt will have its interest rate reduced by about VND 40,000 billion, while the interest rate for newly arising outstanding debt will also be reduced by 0.5 - 2%, applicable until December 31, 2024.

At Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), preliminary statistics show that about VND40,000 billion in outstanding loans to corporate customers and VND20,000 billion in loans to individual customers were damaged by the storm. VietinBank has set aside a 1% interest rate support package, worth VND100,000 billion, to support both old and new customers immediately, applicable until the end of 2024.

Similarly, the Bank for Investment and Development of Vietnam (BIDV) estimates that more than 1,000 customers have been affected by the storm with outstanding loans of more than VND40,000 billion. BIDV has reduced interest rates by 0.5 - 2% depending on the level of damage to customers. In addition, the bank has also launched a VND60,000 billion credit package for new customers with preferential interest rates.