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Vietnam Bank for Social Policies scales up support in aftermath of Typhoon Yagi
Vietnam Bank for Social Policies (VBSP) has announced it will suspend interest payments for borrowers affected by Typhoon Yagi and the subsequent flooding until December 31.
Deputy CEO Huynh Van Thuan made the announcement on September 19 after the government met with representatives of affected localities affected by Typhoon Yagi.
VBSP has directed its units to coordinate with local authorities, relevant sociopolitical organisations that manage entrusted funds, and related entities to review and assess the damages suffered by borrowers.
This will help the bank to implement support measures, and help customers recover quickly, resume production, and stabilise their lives.
At the same time, VBSP is focusing on speeding up the disbursement of policy credit to beneficiaries in need, based on the review.
The bank is building a plan to provide new loans to affected customers, which will be submitted to authorities for approval.
Deputy CEO Thuan added that, based on the ratio of damage compared to the capital, assets, and livelihoods of borrowers, VBSP will assess risky loans and submit the results to authorities for timely resolution.
This aims at helping affected borrowers overcome the consequences of the natural disaster, stabilise their lives, and quickly restore production and business activities.
VBSP is also implementing debt extensions and adjusting repayment schedules for loans that are due. The maximum extension is typically 12 months for short-term loans and up to half the loan term for medium- and long-term loans.
On September 17, the government issued a resolution outlining key tasks to urgently address the aftermath of Typhoon Yagi, striving to swiftly stabilise people’s lives, boost the recovery of production and business, and promote economic growth while keeping inflation under control.
The resolution calls on VBSP to accelerate the disbursement of policy credit programmes, review and summarise the damage suffered by borrowers, assess the need for new loans, and propose funding sources.
VBSP is coordinating with the Ministry of Planning and Investment and the Ministry of Finance to report to the relevant authorities for approval.
Regarding funding for the implementation of the resolution, Thuan said that VBSP is currently reviewing and assessing loan demand for production recovery to formulate a lending plan.
“Based on the aggregated loan demand from localities, VBSP will develop a plan to increase the 2024 credit growth target, balance available funds, report to relevant competent agencies, and submit it to the prime minister for consideration in October. The proposed additional funding approximates $204 million,” he said.
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