To date, 35 credit institutions have announced support packages totaling VND405 trillion (US$16 billion) to continue lending to businesses and individuals affected by storms and floods, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong told a question-and-answer session at the 15th National Assembly’s eighth sitting on November 11.
As of October 31, banks had provided new preferential loans totaling VND27 trillion and reduced interest rates on existing loans with an outstanding balance of approximately VND82 trillion, Governor Hong said in reply to a question by Tuyen Quang province’s Deputy Ma Thi Thuy regarding the banking sector’s support policies for customers in the agricultural field impacted by Typhoon Yagi.
She said that after the typhoon caused significant damage to people and businesses in early September, the central bank conducted surveys in Hai Phong and Quang Ninh - the worst affected by the storm - and identified the outstanding loans in these localities at approximately VND12 trillion.
Subsequently, it instructed credit institutions to focus on reviewing and assessing the damage to outstanding loans held by borrowers in these areas. Data from 26 provinces and cities indicated that the total outstanding loans affected by the typhoon amounted to around VND190 trillion.
On that basis, it directed credit institutions to focus on implementing measures to help businesses and individuals deal with difficulties, such as restructuring loan repayment terms, maintaining loan classification according to current regulations, and considering interest reduction or exemption for those affected by the typhoon.
In addition, the banking system actively participated in social welfare efforts by supporting people and businesses with approximately VND40 trillion, the governor said.
According to her, there are currently many sources of capital available for businesses and individuals, including self-owned capital, bank loans, foreign direct and indirect investment capital, and debt financing.
Therefore, businesses and individuals need to carefully consider which sources of capital are most suitable for their needs.
When accessing capital from the banking system, they must meet the borrowing conditions and standards, with the most important condition being the ability to repay the loans, and having feasible business plans.
The State Bank of Vietnam will make every effort needed to implement credit support measures while still controlling inflation, Governor Hong affirmed.
