PANO – The Vietnam Bank for Social Policies (VBSP) announced that it has provided VND 2,500 billion to support borrowers suffering from recent cold spells to recover from damages, resume production and stabilize their lives.

Large-scale cold spells in northern areas and north central provinces at the beginning of 2016 have caused huge damage to crops and livestock of farmers, which were partially invested by VBSP preferential credit.  

 
 A large area of vegetable covered in snow

According to the VBSP statistics, as of February 22nd, 7,341 borrowers of the bank have suffered from VND 167 billion of loss. The loss is calculated at 8,276 dead livestock, estimated 1,367 hectares of destroyed farming areas and 118 tons of damaged seafood.

Under the direction from the Governor of the State Bank of Vietnam, the VBSP has closely collaborated with local authorities, local socio-political organizations and borrowers to document the credit risk treatment as regulated.

The VBSP has additionally applied appropriate risk treatment, including loan extended to households with damage reported up to 40%, loan frozen for three years at maximum to households with damage reported between 40% to below 80% and five years at maximum to households with damage reported between 80% and 100% (during frozen term, the borrower will not be required to pay interest of the frozen loan and the outstanding debt).

Hoai An