Banks and credit institutions get involved early
Since the end of September 2024, the State Bank of Vietnam (SBV) issued Directive No. 04 to help people and businesses affected by storm No. 3 restore and promote production and business.
The Directive clearly states that, in implementing Resolution No. 143/NQ-CP of the Government dated September 17, 2024, the Governor of the State Bank of Vietnam requests units under the State Bank of Vietnam, credit institutions, foreign bank branches, and associations in the banking sector to urgently and promptly implement many tasks and solutions. Notably, the solution to implement debt cancellation for customers who have suffered heavy losses in loans and assets formed from loans due to the consequences of storms and floods occurring on a large scale.
Immediately after the direction of the State Bank, many large banks have implemented credit packages to support customers to restore production and business. Typically, in Quang Ninh, according to statistics from the State Bank of Vietnam, Quang Ninh branch, out of nearly 18,000 customers borrowing capital from credit institutions severely affected by the consequences of storm No. 3, the outstanding debt loss is over 10,000 billion VND.
Banks in Quang Ninh province have compiled statistics, reviewed and assessed the damage; implemented a 0.5 - 2% reduction in lending interest rates per year; exempted 100% of overdue interest and late payment interest; restructured debt repayment periods; simplified administrative procedures as prescribed; effectively implemented credit solutions for production and business sectors, priority sectors, and economic growth drivers; and developed new credit packages with appropriate interest rates.
Up to now, Quang Ninh has 32/40 banks registering new credit packages, such as: BIDV issued a credit package of 100,000 billion VND, interest rates reduced by 0.5-2% for both existing and new loans to support people and businesses affected by storm No. 3; VietinBank implemented a credit package of 100,000 billion VND to support individual customers to borrow capital to restore operations after the impact of the storm, including short, medium and long-term loans with more preferential interest rates than normal loans...
In addition, many banks also have many preferential interest rate policies for customers who have suffered damage, such as: Agribank also based on the level of damage of customers affected by storm No. 3 and floods to adjust interest rates down from 0.5-2%/year and exempt 100% of overdue interest, late payment interest in the period from September 6, 2024 to December 31, 2024; reduce 0.5%/year of lending interest compared to lending interest rates for loans arising from September 6, 2024 to December 31, 2024. Vietcombank reduces 0.5% of interest rates for customers borrowing capital for production and business in areas damaged by storms, from September 6 to the end of this year.
In Hai Phong, the leader of the State Bank of Vietnam, Hai Phong City Branch, said that after storm No. 3, a total of 13,181 customers suffered damage due to the storm, with a total outstanding debt of more than VND 27,000 billion, of which the Social Policy Bank, Hai Phong branch, had 11,769 customers, with a total outstanding debt of VND 530 billion.
To support customers to overcome difficulties, the State Bank of Vietnam, Hai Phong City Branch, directed credit institutions in the area to proactively review and summarize the losses of customers who are borrowing capital to promptly implement support measures and resolve difficulties for customers such as: restructuring debt repayment terms, considering interest rate exemptions and reductions, continuing to provide new loans... to restore production for customers who suffered losses after the storm.
According to Lao Dong reporters in Lang Son, the provincial Social Policy Bank has directed consideration of debt extension and interest exemption for customers affected by storm No. 3 with solutions such as considering debt extension and adjusting debt terms for affected loans, arising debts due from September 2024. Interest on loans for customers affected by storm No. 3 and floods after the storm will not be collected until the end of December 2024 and the level of damage will be assessed for each customer's loan to apply appropriate risk management measures.
In addition, the Lang Son Social Policy Bank also requires entrusted socio-political organizations to promptly grasp the losses of borrowers to propose handling measures such as exempting or reducing interest, and handling risky debts according to regulations.
At the same time, complete the file for handling risky debts for customers who borrowed capital due to storm No. 3, direct the affiliated savings and loan groups to consider loans to ensure transparency, democracy, and the right subjects, focus on propaganda, and synthesize the needs for loan implementation in areas affected by storms and floods.
In Bac Kan, Ba Be Social Policy Bank is one of the units that has implemented solutions to support people early. It includes procedures to temporarily suspend interest collection for customers affected by the storm in the locality until December 31, 2024 according to regulations. For affected borrowers who meet the conditions for risk handling according to regulations, the Transaction Office will direct staff in implementing the application for handling risky debt, providing guidance on preparing risk records, checking, appraising, and ensuring the legality and validity of the application for handling risky debt before submitting it to the competent authority for approval.
Timely social security policies
Recently, the People's Council of Yen Bai province has unanimously passed a resolution on tuition support policy for preschool children, students and trainees studying at public educational institutions in the national education system in the area for the 2024-2025 school year. Accordingly, the support level is 100% for about more than 22,000 students and trainees (excluding cases that have been exempted according to the provisions of the Education Law and Decree 81 of the Government on tuition fees). The total amount of more than 48 billion VND is expected to be taken from the local budget.
Supporting tuition fees for preschool students, pupils and students in the province is very timely, necessary and urgent, and demonstrates humanity in sharing difficulties and supporting parents and students in the area affected by storms and floods in recent times.
Thus, to date, Yen Bai is the 7th locality in the country to pass a resolution to exempt 100% of tuition fees for students from preschool to high school in the 2024-2025 school year. Other localities exempting tuition fees include: Quang Nam, Quang Ninh, Da Nang, Hai Phong, Ba Ria-Vung Tau, Khanh Hoa.
In Ha Giang, prolonged heavy rains caused landslides and flash floods in some areas of Ha Giang province, causing serious damage to people and property. In particular, hundreds of people were forced to evacuate to safety when cracks and landslides continued to appear on high hills.
A typical example is the landslide on National Highway 2 through Nam Buong village (Viet Vinh commune, Bac Quang district) on the morning of September 29, the landslide buried many people, vehicles and some houses along the road. About 500m from the landslide, hundreds of households in Thuong My village (Viet Vinh commune) were forced to evacuate that night. Currently, people have been taken to cultural houses and schools to ensure safety.
Informing Lao Dong, Chairman of the People's Committee of Ha Giang province Nguyen Van Son said that he has requested Bac Quang district to implement the "4 on-site" motto in natural disaster prevention. He requested that functional forces make efforts to deploy search and rescue measures, and have a plan to handle unexpected incidents. Localities must ensure safety, evacuate people to safe places, and provide necessities for displaced households to temporarily stabilize their lives.
Speaking to Lao Dong Newspaper reporters, Mr. Nguyen Xuan Thang - Director of the Transaction Office of the Social Policy Bank (SPB) in Dien Bien district, Dien Bien province - said that the Bank has currently implemented many policies to help Muong Pon people stabilize their lives soon.
Accordingly, in Muong Pon commune, up to now, one household has had its debt of 50 million VND cleared and many households have had their debts from 20 to 50 million VND cleared.
“For households with less than 40% damage, the debt will be extended; from 40-100%, the debt will be frozen for 3-5 years. For households with members who have died and are unable to pay the debt, the debt will be considered for debt cancellation, both principal and interest,” Mr. Thang added.
In Lao Cai province, the Provincial People's Committee has just issued document No. 5318 on research and advice to temporarily not collect tuition fees for students in areas affected by storm No. 3.
In the immediate future, the Department of Education and Training of Lao Cai province informs educational institutions to temporarily not collect tuition fees from September to the end of November for the 2024-2025 school year for the above subjects. REPORTER GROUP
