Many banks are strongly supporting businesses
According to a quick report on the situation of customers affected after storm No. 3 by the State Bank of Vietnam, Hai Phong branch, there were a total of 890 customers with a total outstanding debt of VND 15,686 billion affected after the storm.
In Quang Ninh, according to a quick grasp by local banks, a total of 11,058 customers with a total outstanding debt of VND 10,654 billion (accounting for 5.6% of the total outstanding debt in the area) were severely affected by the consequences of storm No. 3; some customers in the aquaculture sector were severely affected (aquaculture rafts were washed away).
Preliminary statistics from the State Bank of Vietnam estimate that there is about VND80,000 billion in outstanding debt in provinces and cities affected by storm No. 3. In recent days, the banking sector has issued timely instructions and implemented solutions such as restructuring debt repayment terms, reducing and exempting loan interest rates; requiring commercial banks to reduce interest rates on new loans to support people and businesses affected by the storm.
At Agribank, Ms. Phung Thi Binh - Deputy General Director of the Bank - said: It is expected that this week, Agribank will reduce interest rates by 0.5 - 2% on the current interest rates to support customers affected by storm No. 3, depending on the level of damage. Many other banks such as: Vietcombank, BIDV, MB, VPbank, TPbank... have announced preferential loan packages, reducing loan interest rates for customers affected by storms and floods.
Strong policies to help people and businesses rebuild after the storm
According to experts, to rebuild production immediately, stronger solutions are needed, such as debt forgiveness for borrowers severely affected by the storm.
Talking to Lao Dong, Dr. Chau Dinh Linh - Lecturer at Ho Chi Minh City Banking University - said that to erase a debt, it means we must have another source of money to match the erased debt.
"To cancel debt, we need to have a source of money. It's like we can't print more money to cancel debt because doing so will affect monetary policy and increase inflation. To cancel debt for organizations, businesses and individuals that suffered heavy damage after the storm means spending the budget to cover the debt cancellation, or we can use a source of the country's accumulated assets to cancel debt" - Dr. Linh said.
Accordingly, Dr. Linh proposed: Like Decree 116 of 2018, we can classify and evaluate according to each level, each recovery ability of organizations, individuals, and businesses. He gave an example, we can classify and evaluate according to each level as follows: Able to recover, recover, unable to recover. All are divided into percentages. At what percentage is there a complete solution.
"If the rate of non-recovery is high, solutions can be proposed to extend the repayment period, freeze the debt, and not charge interest on the current principal balance. This will be a very drastic solution to accompany people in flood-hit areas after suffering heavy losses. For the group with the ability to recover, we will combine the solution of extending the repayment period and starting to reduce and waive interest for a certain period of time. As for the recovery group, there are other solutions such as disbursing more money to this group so that they can continue to recover production and business, store goods, hire labor and materials, helping their production and business capacity to recover even better" - Dr. Linh shared.
This expert emphasized that all solutions must be evaluated according to level, implementing one or two solutions or simultaneously. In addition, it is possible to use financial resources from international support funds and domestic charity funds to distribute support to the affected people.
Regarding fiscal policy, the 2019 Tax Administration Law clearly stipulates cases of tax exemption, reduction, and extension of tax payment time for taxpayers affected by natural disasters.
Dr. Linh suggested that it is possible to extend the 8% VAT reduction policy for areas affected by storms and floods, or extend the time for tax payment and tax declaration while promoting insurance compensation. However, the expert also pointed out that the most important thing is to impact the total demand of areas heavily affected by storms. When total demand increases, total supply increases accordingly, which will create a balance, help boost production, and the regional economy can recover. In particular, local authorities must also actively implement solutions to rebuild infrastructure and support jobs, so that people can soon stabilize their lives.
Van Don fishermen: We do not give up
Storm No. 3 almost wiped out the marine aquaculture industry in Van Don - one of the largest marine farming centers in the country - with total damage of more than 2,200 billion VND. Left empty-handed and in debt after the storm, fishermen believe they will be able to restore their profession and wish to have their debts cleared, deferred, and postponed, and at the same time given more loans.
Mr. Dang Trung Hoi - Director of Quang Ninh Milk Oyster Development Cooperative, one of the largest milk oyster farms in the country - said that all of the cooperative's cages were destroyed, one of the four ships sank and one was lost. The damage was about 20 billion VND, accounting for over 90% of the cooperative's assets.
"We will try, but we also want the government to support us somewhat, especially in terms of capital. If that happens, I believe that in 2 years, aquaculture in Van Don will return to the way it was before storm No. 3 hit," Mr. Hoi shared. The biggest difficulty now is capital, because they have nothing left to mortgage to borrow from the bank; not to mention the principal and interest debt is still there.
Ms. Lieu Thi Minh Luyen, village 10, Ha Long commune, Van Don district, Head of Da Den aquaculture cooperative, suffered a loss of more than 6 billion VND, with 4 oyster farms not knowing where they went, the remaining farms also disintegrated, 2 rafts for raising silver pomfret disappeared along with a sunken cement ship, and a newly purchased boat still missing.
“We will not give up. We will arrange capital to gradually recover, but we hope the government and banks will have mechanisms and policies to support us soon,” Ms. Luyen suggested.
According to Mr. Nguyen Duc Hien - Director of The State Bank of Vietnam Branch in Quang Ninh - currently, some banks have considered reducing interest rates for fishermen and are studying support policies. Meanwhile, the People's Committee of Quang Ninh province is assigning relevant departments, branches and units to urgently complete documents (reports/projects, draft Proposals, draft Resolutions...) on a number of urgent policies that need to be issued soon to help people and businesses stabilize their lives and restore production and business after storm No. 3, to submit to the People's Council of Quang Ninh province for consideration in an extraordinary meeting, scheduled for September 23. Nguyen Hung
