The above information was shared by a representative of the State Bank at the seminar "Overcoming the consequences of storm No. 3 - What support for people and businesses" recently organized by Tien Phong Newspaper.

Ms. Ha Thu Giang - Director of the Credit Department, State Bank of Vietnam (SBV) - said that SBV is in the process of collecting opinions from relevant parties on a draft of a new circular regulating the restructuring of debt repayment terms for customers affected by storm No. 3.

The subjects of application of this Circular include: credit institutions, customers of credit institutions in 26 provinces and cities facing difficulties in debt repayment due to damage caused by storm No. 3; other organizations and individuals related to debt repayment restructuring.

The restructuring of debt repayment terms for customers affected by storm No. 3 is carried out according to the provisions of this Circular; other contents related to debt repayment restructuring are carried out according to the provisions of other relevant documents.

The draft circular has been sent to relevant parties for comments. The State Bank will summarize the comments before October 3, 2024.

Along with that, the State Bank will coordinate with the Ministry of Planning and Investment to report to the Prime Minister for decision on debt suspension, the maximum debt suspension period is 2 years, the source of interest paid during the debt suspension period will be arranged by the local budget. In case the locality encounters difficulties, there will be a specific report to have support policies from the central to local levels.

After the Government's decision and new circular, the State Bank will continue to direct and urge implementation throughout the system and survey and evaluate in each locality.

“This is also part of the banking industry’s action plan to help localities, businesses and people overcome the consequences of storm No. 3,” said Ms. Ha Thu Giang.

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A business establishment in Ha Long, Quang Ninh suffered heavy damage caused by storm No. 3. (Photo: Pham Cong).

Regarding loans under preferential loan packages for agriculture and rural areas, the Director of the Credit Department said that there was a full mechanism in place before, and credit institutions will apply the mechanism for implementation.

Specifically, the Government issued Decree 55 amending and supplementing Decree 116 of 2018, which fully stipulates policies on risk handling in case of natural disasters and epidemics; Credit institutions proactively restructure debt repayment terms, maintain debt groups, lower interest rates, and provide new loans so that customers have conditions to restore production and business.

The Director of the Credit Department said that not only in the current difficult period, but also when the country had to deal with the consequences of the Covid-19 pandemic, the banking industry has synchronously deployed appropriate solutions for socio-economic development, typically the SBV's issuance of Circular 02 on debt restructuring, the policy is being effectively implemented, effective until December 31, 2024.

On the side of the Vietnam Bank for Social Policies (VBSP), Mr. Huynh Van Thuan, Deputy General Director, said that the VBSP also extended debt and adjusted debt terms for loans due for repayment (applied to loans with debt due from September 2024). The maximum normal term is 12 months for short-term loans and a maximum of 1/2 of the loan term for medium and long-term loans.

“Based on the synthesis of local borrowing needs, the VBSP will develop a plan to supplement the credit growth target for 2024, balance the implementation capital to report to the Ministry of Planning and Investment, the Ministry of Finance, and submit to the Prime Minister for consideration and decision in October 2024. It is expected to submit an additional amount of about VND 4,900 billion,” said Deputy General Director Huynh Van Thuan.