Expected debt repayment extension for borrowers affected by storms and floods

The State Bank is seeking comments on a draft Circular regulating the debt repayment schedule to support customers in difficulty due to damage caused by storm No. 3 (Yagi). The draft circular applies to credit institutions and foreign bank branches, excluding policy banks. The Circular is expected to take effect from October.

Accordingly, customers borrowing capital in the provinces and cities including Ha Giang, Cao Bang, Lang Son, Bac Giang, Phu Tho, Thai Nguyen, Bac Kan, Tuyen Quang, Lao Cai, Yen Bai, Lai Chau, Son La, Dien Bien, Hoa Binh, Hanoi, Hai Phong, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, Thai Binh, Nam Dinh, Ha Nam, Ninh Binh, Quang Ninh, Thanh Hoa who have difficulty in repaying debts due to storm Yagi will receive support from this Circular.

According to the provisions in the draft, banks are allowed to consider restructuring the repayment period for the principal and/or interest balance of the debt based on the customer's request and the financial capacity of each unit. The Circular applies to customers with principal balance arising before September 7 and the obligation to repay principal and/or interest arising in the period from September 7 to December 31, 2025.

Expected debt repayment extension for borrowers affected by storm Yagi (Photo: Manh Quan).

The review of debt repayment schedule is carried out within the first 3 months from the effective date of this Circular and the repayment schedule shall not exceed 1 year. The final repayment date of the loan shall be restructured depending on the customer's difficulty level but shall not be later than December 31, 2026.

Recently, a series of banks have also announced a 0.5-2% reduction in interest rates for individuals and business households borrowing capital that suffered losses due to Typhoon Yagi, with a total value of about 405,000 billion VND.

At a recent conference, State Bank Governor Nguyen Thi Hong also said that according to the assessment of the units as of September 25, the outstanding debt affected by storm No. 3 in all provinces and cities reached VND165,000 billion. The number of customers affected was more than 94,000 people.

Source: https://dantri.com.vn/kinh-doanh/du-kien-gia-han-tra-no-cho-khach-vay-bi-anh-huong-boi-bao-lu-20240930170354919.htm