Credit incentives promoted to support people, businesses to rebuild after natural disasters

Credit incentives promoted to support people, businesses to rebuild after natural disasters

The State Bank of Việt Nam (SBV) has proactively rolled out low-interest credit packages and programmes to support people and businesses hit by storms and floods to restore production and business activities, in line with directives from the Government and the Prime Minister, according to SBV Deputy Governor Phạm Thanh Hà.

A man receiving preferential loan from the Việt Nam Bank for Social Policies. — VNA/VNS Photo

The State Bank of Việt Nam (SBV) has proactively rolled out low-interest credit packages and programmes to support people and businesses hit by storms and floods to restore production and business activities, in line with directives from the Government and the Prime Minister, according to SBV Deputy Governor Phạm Thanh Hà.

Speaking at the Government’s regular press conference on December 6, Hà cited banks’ statistics as saying that around 250,000 borrowers with outstanding loans of nearly VNĐ60 trillion (US$2.27 billion) have been affected by natural disasters.

Following directions from the Government and the Prime Minister, the central bank has implemented timely and dedicated measures to support recovery, including restructuring loan repayment terms for affected borrowers, reducing lending rates by 0.5-2 percentage points in three to six months for around 24,000 customers with loans totalling VNĐ14 trillion ($531 million).

In addition, a VNĐ70 trillion ($2.6 billion) credit package to help restore production and business has been carried out. To date, banks have disbursed VNĐ1.5 trillion ($56.9 million) to about 6,500 customers.

On December 4, the Prime Minister issued Decision No. 2654/QĐ-TTg, requiring a 2 per cent interest rate cut for the three final months of 2025 for about three million storm-affected borrowers in 22 provinces and cities, with support covering more than VNĐ1.1 trillion ($41.7 million) in interest.

For damage caused by Typhoon Kalmaegi in Gia Lai, Đắk Lắk, Lâm Đồng, and Khánh Hòa last month, the Việt Nam Bank for Social Policies is finalising procedures to propose a similar two per cent interest rate reduction for nearly one million customers, with an estimated support amount of nearly VNĐ300 billion ($11.3 million), Hà shared.

Regarding the use of the state and central budgets to support localities hit by storms and floods, Deputy Minister of Finance Nguyễn Đức Chi said many northern and south-central localities have suffered consecutive natural disasters. The ministry has assessed and reported to the Government the significant impacts of these disasters on the GRDP growth of the affected localities, as well as on national GDP growth in the fourth quarter and the whole year.

Facing this situation, the Prime Minister has decided to allocate more than VNĐ6.8 trillion ($257 million) from the 2025 central budget to support the affected localities, ensuring urgent funding to meet the immediate needs in disaster and flood recovery.

The Deputy Minister noted that policies relating to taxes, fees, and financial support for disaster-hit organisations, businesses and residents are clearly regulated. Under the Law on Tax Administration, organisations, individuals and enterprises suffering force majeure losses caused by storms and floods are eligible for tax payment extensions and deferrals. The Law on Corporate Income Tax also allows enterprises to include force majeure disaster losses in their reasonable and allowable expenses.

The ministry will continue close coordination with the Ministry of Agriculture and Environment, disaster-hit localities, and relevant ministries and sectors to develop urgent financial solutions for disaster recovery, while also considering longer-term financial measures to restore business infrastructure, strengthen resilience to future natural disasters, and reduce losses for residents and enterprises, Chi stressed. 

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