Banks take measures to support typhoon-affected customers

Figures from credit institutions and branches of foreign banks showed that around 83,400 customers were affected with a total outstanding loan of VND116 trillion (over US$4.71 billion), Deputy Governor of the State Bank of Vietnam Dao Minh Tu said at a meeting on September 20 to discuss solutions to support businesses and people affected by the storm.

Besides debt restructuring and deferral policies, most of the banks have reduced lending interest rates on existing and new loans, commonly at 1-2%. Notably, some banks have reduced up to 50% of current interest rates for customers who are affected by the storm and floods.

For examples, Tien Phong Commercial Joint Stock Bank (TPBank) said that it has allocated more than VND2 trillion to support individual customers with interest rate halved. This preferential interest rate will be kept fixed until January 31, 2025, at the latest.

Similarly, for corporate customers, TPBank also allocated preferential loans worth VND2 trillion; of that, VND1.2 trillion for current customers and VND800 billion for new ones with an interest rate reduction of up to 2%.

Loc Phat Commercial Joint Stock Bank (LPBank) reported that about 63,200 customers of its were affected by the typhoon with an outstanding loans of about VND29 trillion.

The bank has reduced interest rates by up to 2% yearly for existing customers. It is developing a new loan package of VND8 trillion, with lending interest rates from only 6-6.5% per year.

Appreciating the banks' support policies to customers, Deputy Governor Tu said that most banks have shown a sense of responsibility and proactively built support packages.

The support packages on offer are very positive with interest rate cut of by 1-2% or even up to 50% of the current interest rates depending on the level of damage, he said.

Previously, Chairman of the People's Committee of Quang Ninh province Cao Tuong Huy proposed that there should be a policy of debt suspension and extension for forestry and aquacultural production households that suffered losses to the storm with specific procedures and instructions.

As for new borrowers who currently have no collateral, banks need to provide specific loan procedures and instructions.

Huy urged banks to continue to have harmonious solutions and incentives for borrowers, adding that local authorities are committed to supporting and creating the most favourable conditions for them.