At the meeting on September 18 to discuss solutions to support businesses and people affected by the storm, Tu said property damage is estimated to amount to more than 50 trillion VND (2.03 billion USD) and forecast to cause a drop of 0.15 percentage point to GDP expansion rate in 2024 from the growth scenario of 6.8-7%.

Figures from credit institutions and branches of foreign banks in affected localities as of September 17, showed that around 73,000 customers were affected with a total outstanding loan of 94 trillion VND. The numbers will increase as banks continue to update.

Huge outstanding loans are a big problem to the banking industry, Tu said. If there is no appropriate and timely policy, not only customers but also the banking system will fall into difficulties, he added.

Hoang Minh Ngoc, Deputy General Director of Agribank said they have about 12,600 customers affected as of September 16, with a total outstanding loan of 25 trillion VND. Sectors which were seriously affected are fishery, cultivation and husbandry.

Agribank has lowered interest rates by 0.502% per year for affected customers depending on the damage levels, he said. The bank also waives overdue and late payment fees to the end of this year.

At Vietcombank, the outstanding loans affected by the storm are estimated to total 105 trillion VND, or 7% of the bank’s total outstanding loan. Of the figure, an estimated sum of 12.9 trillion VND was seriously affected.

Vietcombank has provided an interest rate cut of 0.5% per year for existing and new loans of customers directly affected by the storm, Nguyen Viet Cuong, Deputy General Director of Vietcombank said. Around 130 customers will benefit from the support with a total value of around 22 trillion VND.

BIDV plans to cut interest rates for new loans for recovering production and business by around 1% and 0.5% for existing loans.

The SBV is developing a circular on mechanisms for extending and deferring payment deadlines for loans affected by the storm.

Tu urged credit institutions to accompany and support customers with the spirit of harmonisng benefits and sharing risks. Support policies should be transparent and go to the right subjects, he stressed, adding that the support policies should be on extension of payment deadline and interest rate reduction.

The Government has asked the SBV to develop new credit programmes with appropriate preferential interest rates for customers to restore production and business after the storm./VNA