Need to increase policy capital to solve employment for workers

On the afternoon of April 14, the Board of Directors of the Vietnam Bank for Social Policies (VBSP) Nghe An branch held its 71st regular meeting. Attending were members of the Board of Directors of the VBSP province, leaders of entrusted agencies and political and social organizations.

In line with the Resolution of the 4th quarter meeting of 2021 of the Provincial Board of Directors, the Provincial Social Policy Bank branch has advised the Board of Directors and coordinated with relevant units and organizations to effectively implement key tasks in the first quarter. By March 31, 2022, the total capital reached VND 9,937 billion, an increase of VND 255 billion compared to 2021, achieving a growth rate of 2.6%.

Comrade Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An branch, chaired the regular meeting of the Board of Directors of the Vietnam Bank for Social Policies. Photo: TH

Loan turnover in the first quarter reached VND 791.1 billion, up 12.97% over the same period last year. In the quarter, 12/20 programs were disbursed, 8 programs could not be disbursed due to the expiration of the program implementation period. Debt collection turnover reached VND 549.2 billion, down 2.4% over the same period last year. Most customers complied well with the regulations on debt repayment and interest payment when the final deadline according to the agreement, in which, there were a number of programs with high debt collection turnover such as: loan programs for near-poor households, households that have just escaped poverty, poor households, clean water loans, etc.

By March 31, 2022, total outstanding debt reached nearly VND 9,913 billion/20 programs.policy credit. There are 6/20 credit programs with outstanding loans increasing compared to the beginning of the year, in which, some programs have large growth rates such as: loans for poor households increased by 9.3%, loans to support businesses to pay salaries increased by 60.2%, loans for near-poor households increased by 4.9%.

In addition, there are 14 debt reduction programs, of which 7 have expired so only debt collection is being carried out, and some other objective reasons.

Comrade Tran Khac Hung - Director of the Provincial Social Policy Bank reported on the first quarter of 2022 performance. Photo TH

In particular, the unit has been very active in disbursing capital to businesses in need and eligible to borrow capital to pay salaries to employees affected by the Covid-19 pandemic, ensuring timely payment before the program ends on March 31, 2022. In the first quarter of 2022, loans were disbursed to 20 businesses with an amount of more than VND 8,097.33 million/support for 2,380 workers. At the end of the program, there were 56 businesses in the province with an amount of VND 21,984 million for 3,128 workers supported.

Speaking at the meeting, members of the Board of Representatives said that the actual demand for loans to create jobs and expand employment for workers in the province in the period of 2022-2023 (according to Resolution 11 of the Government) is very large (1,465 billion VND), while the capital provided by the Central Government is very limited (the Vietnam Bank for Social Policies has only allocated 25 billion VND - counterpart from local capital entrusted). Therefore, this capital source currently only meets a very small part.capital needs to solve employmentof workers.

Trong Phuc Garment Company Limited in Dien Chau district was loaned nearly 800 million VND with 173 workers supported due to the impact of the Covid-19 epidemic. Photo TH

Currently, the labor export loan program from the central budget is only for poor households, near-poor households, policy families and ethnic minorities; while workers from families other than the above who need to borrow capital to work abroad cannot access policy credit capital, making it difficult for people to create a livelihood to escape poverty. In addition, through internal inspections of the Vietnam Bank for Social Policies and the State Audit, it is shown that in some places, commune-level associations and Savings and Credit Groups do not closely supervise the loan evaluation process, allowing overlapping loan evaluation (households with many people applying for loans) and loan evaluation for workers who already have stable jobs.

In her concluding remarks at the meeting, Ms. Nguyen Thi Thu Thu - Director of the State Bank of Nghe An branch highly appreciated the results achieved in the first quarter of 2022 by the Board of Directors. Regarding the implementation of tasks in the second quarter, the Director of the State Bank requested the Board of Directors at the provincial and district levels to direct and advise the Chairmen of the People's Committees of districts and towns that have not completed the transfer of local entrusted capital to continue to complete the assigned targets in the second quarter (to date, there are 4 units that have not completed: Do Luong, Nghia Dan, Quy Hop, Cua Lo).

Comrade Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An branch, gave a speech directing the tasks in the coming time. Photo TH

Continue to direct relevant departments, branches and sectors to coordinate with the People's Credit Fund to effectively implement thepolicy credit programin accordance with Resolution 11 of the Government on socio-economic recovery and development; effectively implement preferential credit policies and guidelines in the area, promptly disburse capital; complete debt reconciliation and classification; closely monitor capital sources to ensure loans are given to the right subjects, capital is used for the right purposes, and efficiency is promoted.

In addition, socio-political organizations are entrusted to focus on directing grassroots units to strengthen propaganda work, mobilize members to borrow capital and people to actively participate in monthly savings deposits and savings at market interest rates at commune transaction points to ensure the completion of assigned plan targets. Strictly implement the work of evaluating loans to ensure publicity, democracy, and correct subjects, avoid the situation of lending to overlapping programs or households with many people borrowing capital and lending to resolve employment for people who already have jobs...

Comrade Nguyen Thi Thu Thu - Director of State Bank of Vietnam, Nghe An branch