“Banks to Support Customers Affected by Storm Yagi in Haiphong and Quang Ninh; Over 12,000 Loan Borrowers Impacted”

Speaking at the meeting, Deputy Governor Đào Minh Tú said that the third storm was intense and affected many provinces, with Quảng Ninh and Hải Phòng being the two provinces at the “forefront.” The storm has caused severe damage to both local banks and their customers, including individuals and businesses.

The storm has left many difficulties and losses, but the most important thing is the humanity and responsibility that remain. Many areas in the affected provinces are now facing flooding and landslides after the storm, with people losing their homes and livelihoods. Some have suffered tragic losses. Therefore, it is the responsibility of the banking industry to share the difficulties of the people and businesses. We need to provide support in terms of lending to help them get back on their feet and, in turn, be able to repay their loans,” the Deputy Governor emphasized.

At the meeting, Mr. Nguyễn Đức Hiển, Director of the SBV’s Quảng Ninh branch, informed that most banking units had suffered damage to their physical infrastructure, especially those in the areas directly hit by the storm, such as Hạ Long City, Cẩm Phả, Uông Bí, and Quảng Yên. The damage mainly included branch offices, transaction offices, and ATMs.

According to preliminary estimates, the total damage to the physical infrastructure of credit institutions and their branches in the area is estimated at VND 27.4 billion, and it will take several days to fully recover.

Regarding the customers of credit institutions, the third storm has caused damage to the physical infrastructure of most agencies, units, businesses, and individuals in Quảng Ninh province. As of September 10, 2024, a total of 11,058 customers with a total outstanding debt of VND 10,654 billion (accounting for 5.6% of the province’s total outstanding debt) have been severely affected by the storm; some customers in the field of aquaculture have suffered significant losses (loss of fish farms).

Ms. Nguyễn Thị Dung, Director of the SBV’s Hải Phòng branch, said that due to the impact of the third storm, most branches of credit institutions and people’s credit funds in the area have suffered damage to their physical infrastructure, such as signboards, roofs, ceilings, glass doors, advertising boards, roller shutters, and ATM booths.

According to a quick report on the situation of affected customers, there are a total of 890 customers with a total outstanding debt of VND 15,686 billion affected by the storm. These customers are mainly in the fields of livestock breeding, aquaculture, production, business, and commerce, as well as wharves, fishing boats, and seafood processing.

At the meeting, representatives of banks said they were quickly implementing several solutions to support customers affected by the storm.

Mr. Lê Duy Hải, Deputy General Director of VietinBank, said that according to preliminary statistics, about 195 corporate customers were affected by the third storm, with outstanding loans of about VND 18,000 billion. In the coming time, the bank will quickly assess the overall damage to customers in the system and take appropriate support measures. For customers who have purchased insurance from the bank, VietinBank will expedite compensation to help people stabilize their lives as soon as possible.

Regarding BIDV, Mr. Lê Trung Thành, Deputy General Director, said that the bank had continuously updated information from its branches in Hải Phòng and Quảng Ninh and some other localities to assess the damage to customers. The bank considers this an urgent task that needs to be prioritized, evaluating each customer’s case to have a debt restructuring plan, debt rescheduling, interest rate reduction, issuing credit packages with reasonable interest rates and scales to accompany people and businesses to recover from the storm.

Concluding the meeting, SBV Deputy Governor Đào Minh Tú directed that in the coming time, SBV branches in provinces and cities directly affected by the third storm need to seriously implement several tasks.

Specifically, they need to pay attention to and consider the circumstances of the branch’s officers and employees and provide immediate support if they are facing difficulties due to the storm. Additionally, they should continue to ensure the safety of vault and treasury operations and respond to post-storm flooding. They should also continue to direct the statistics of damages caused by the third storm to the banking industry in the area and effectively inspect and supervise credit institutions to ensure that the SBV’s policies to support people and businesses are promptly implemented in practice. However, it is also necessary to ensure that customers are supported without taking advantage of the policies. The Deputy Governor also suggested that SBV branches could research and propose policies suitable for their localities.

For credit institutions, the Deputy Governor requested a quick review of each customer’s case to clarify the extent of the damage and understand their wishes and proposals. At the same time, they should become a “pillar” for businesses, not collecting debts by all means but being flexible and sharing responsibilities. Within their authority, the branches should consider supporting customers by reducing interest rates and providing loans to help businesses resume production and business activities.

Regarding the departments, bureaus, and units of the SBV, the Deputy Governor emphasized the need to continue monitoring the situation and compiling statistics on the damage caused by the third storm to have an overall picture of the losses in the banking industry as soon as possible. Based on this, relevant mechanisms can be proposed to overcome the consequences of the storm and floods.