State Bank of Vietnam directs lenders to restructure debt and cut interest rates by 0.5 to 2 percentage points for storm and flood affected borrowers

The State Bank of Vietnam has issued an instruction requiring credit institutions and its regional branches in affected areas to roll out relief measures for households and businesses hit by Typhoons 10, 11 and 12 and prolonged flooding in Central Vietnam, including debt restructuring, interest and fee reductions, and preferential credit to support production recovery. The measures apply to credit institutions and foreign bank branches, as well as State Bank of Vietnam branches in regions 1, 3, 4, 5, 6, 7, 8, 9 and 12. Firms must assess affected customers’ operations and repayment capacity for losses incurred between July 2025 and October 2025, then apply support under existing rules, including rescheduling repayment, waiving or reducing interest and fees, launching lower-than-normal lending rate credit programmes, and reducing interest rates on existing outstanding loans by 0.5% to 2% per year for three to six months. Debt handling for borrowers with damaged loan capital must follow Government Decree 55/2015 on agricultural and rural credit policy as amended, alongside related State Bank of Vietnam guidance, while the Vietnam Bank for Social Policies is instructed to implement the tasks assigned under Government Resolution 347/NQ-CP. Regional State Bank of Vietnam branches are required to direct local credit institutions to implement the measures and coordinate with local departments to support provincial and municipal People’s Committees’ relief efforts. Chairs, chief executives and branch directors are instructed to implement the requirements urgently and escalate issues beyond their authority to the State Bank of Vietnam.