94,000 borrowers suffered losses after the storm

At the summary conference after Typhoon Yagi, Governor of the State Bank Nguyen Thi Hong said that credit institutions have reviewed and assessed the damage of loan customers after storm No. 3 (Typhoon Yagi).

According to assessments of banks throughout the system, by September 25, the outstanding debt affected by storm No. 3 in all provinces and cities amounted to 165,000 billion VND. The number of affected customers is more than 94,000.

Quang Ninh, the province most severely damaged, has more than 17,500 affected customers with a total outstanding debt of 46,425 billion VND, according to Chairman of Quang Ninh Provincial People’s Committee Cao Tuong Huy.

Governor Nguyen Thi Hong said that at a recent online banking industry conference, 32 credit institutions in 26 Northern provinces and cities announced credit packages to support customers. The total value of the packages is 405,000 billion VND, with interest rates 0.5-2% lower than regular loans.

To increase credit sources to support businesses and people, the State Bank proposed competent authorities to allocate capital sources for policy credit programs being implemented at the Bank for Social Policy. If necessary, Ms. Hong proposed that ministries submit to the Prime Minister additional credit growth targets for the Bank for Social Policies in 2024-2025.

The banking industry management agency also requested the People’s Committees of provinces and cities to work with banks to grasp the situation, complete loan documents, and freeze debts for businesses and people.

Typhoon Yagi, floods and landslides in northern provinces and cities caused damage to people and property. The loss it causes to localities amounts to more than 81,500 billion VND and this year GDP may decrease by 0.15% compared to the previous scenario. Of which, Quang Ninh reported a loss of 25,000 billion VND; Hai Phong 12,300 billion VND.

In the coming time, Prime Minister Pham Minh Chinh emphasized that one of the goals is still to restore production and business, promote economic growth, and well control inflation. He requested ministries, branches and localities to strictly implement telegrams and directives after the storm.

Previously, ministries and branches were assigned to implement policies to postpone, exempt, and reduce taxes, fees, and charges for damaged organizations, individuals, and businesses. Insurance businesses promptly compensate insurance buyers for losses. Currently, insurance businesses have received about 12,000 reports of damage to property, motor vehicles, and health. Estimated damage is about 9,000 billion VND, according to the Ministry of Finance.

Credit institutions and commercial banks are required to review and summarize losses, offer policies to support interest rates, freeze and reschedule debts, and continue lending to people and businesses to restore operations. .

Localities shorten the time to handle procedures by half as usual when businesses, cooperatives, farms, and household owners in the agricultural sector propose and invest in new projects. They must also direct tax authorities and banks to freeze, defer debt, and reduce 100% of taxes payable until December 31, 2025 for this group of customers.