Several banks suspend interest payments for typhoon-affected borrowers

Vietnam Bank for Social Policies (VBSP) announced that it would temporarily suspend interest collection for borrowers affected by Typhoon Yagi and subsequent floods until December 31.

The bank has committed to extend loan maturities and reschedule repayment terms for loans coming due, applicable to loans maturing from September onwards.

"VBSP will develop a plan to supplement its credit growth targets for this year, balance the funding sources, and report to the Ministry of Planning and Investment, the Ministry of Finance, and submit it to the Prime Minister for consideration and decision in October. An additional $204 million is expected to be proposed," said Huynh Van Thuan, Deputy General Director of VBSP.

Pham Toan Vuong, general director of Agribank, stated that Agribank has adjusted the interest rate for on-balance-sheet loans, reducing rates by 0.5-2 per cent per year based on the extent of damage sustained by borrowers affected by Typhoon Yagi.

"Agribank has waived all overdue interest and late payment interest between September 6 and December 31, and reduced interest rates by 0.5 per cent per year for new loans disbursed during the same period," said Vuong.

BIDV announced that it has more than 1,000 individual customers affected, with outstanding loans exceeding $1.67 billion. The bank implemented an interest rate support scheme offering reductions of 0.5-2 per cent per year, applicable to both existing and new customers.

VietinBank announced a loan interest rate reduction programme with an estimated total outstanding loan value of up to $4.17 billion, aimed at providing capital support to help customers recover. Any business or individual affected by Typhoon Yagi is eligible for an interest rate reduction of up to 2 per cent per year, depending on the purpose and loan term, applicable to both existing and new loans until December 31.

Techcombank has introduced a $208 million credit package with preferential interest rates for individual customers in regions affected by the storm and flooding, available until the end of 2024.

TPBank has also set aside more than $83 million to support individual customers affected, offering interest rate reductions of up to 50 per cent compared to current rates. An additional $83 million is being allocated to support corporate customers, with loan interest rates reduced by up to 2 per cent per year.

SHB is reducing the average interest rates payable by existing customers by 50 per cent from September 1 to December 31.

"SHB may waive up to all interest payable during this period, depending on the severity of the situation," said Ngo Thu Ha, CEO of SHB, at a conference on banking credit solutions to support businesses and individuals affected by Typhoon Yagi hosted by the State Bank of Vietnam in late September.

"Additionally, SHB has allocated more than $80 million in credit with a preferential interest rate of just 4.5 per cent for new loans, available until December 31, to provide capital for customers to rebuild and restore production and business activities. The support period is capped at six months," added Ha.

Business donations critical to address Yagi aftermath Contributions from the business community are being seen as a key factor in addressing the aftermath of Typhoon Yagi and promoting growth in the remaining months of the year.

Manufacturing production suffers after Typhoon Yagi Typhoon Yagi had a significant impact on Vietnam's manufacturing sector in September, with heavy rain and flooding causing temporary business closures and delays across production lines and supply chains.

Credit support for businesses on offer after Typhoon Yagi The banking sector is sharing the burden with businesses by reducing interest rates on existing loans and providing unsecured credit for new ones to help those affected by Typhoon Yagi.