Nearly 7,000 billion VND for loans to social policy beneficiaries

(Baonghean.vn) - Since the beginning of the year, Nghe An Branch of the Bank for Social Policies hasTake advantage of capital sources provided by the Central Government, promote capital mobilization at the local level, basically meet the demand for loans to develop production and business and serve the needs of policy beneficiaries in the area.

According to a report from the provincial Social Policy Bank, total capital by the end of March 2017 reached nearly 7,000 billion VND, an increase of 217 billion VND compared to 2016 (reaching 3.2%).

Up to now, the loan disbursement for the growth target of outstanding debt assigned by the Central Government has been completed, bringing the loan turnover in the first quarter of 2017 to VND 699 billion, equal to 136% compared to the same period. Total outstanding debt reached VND 6,943 billion, up 3.2%.

Vice Chairman of the Provincial People's Committee Le Xuan Dai chaired the meeting. Photo: Thu Huyen

Some credit programs with large loan turnover are: loans for near-poor households 261 billion VND, poor households 152 billion VND, newly escaped poverty households 131 billion VND, clean water and environmental sanitation in rural areas 78 billion VND, production and business households in difficult areas 39 billion VND, students 27 billion VND.

Along with credit growth, the branch pays special attention to credit quality, indicators reflecting credit quality are regularly paid attention to and closely monitored, so the work of collecting and handling overdue debts. Up to now, overdue debts account for 0.2%.

Comrade Tran Khac Hung - Director of the Provincial Social Policy Bank reported the results of the first quarter of 2017 and some solutions for the second quarter of 2017. Photo: Thu Huyen

However, overdue debt increased by 1,646 million VND compared to the beginning of the year; all 4/4 organizations had overdue debt increase. The main reason was that the bad debt was not recoverable.

The credit program for forest plantation and livestock development under Decree 75 of the Government has been transferred capital by the Central Bank for Social Policies but has not been disbursed yet. The reason is that the granting of land use rights and land allocation decisions is still slow; the forest plantation budget design of the beneficiary households is not yet available, so the conditions for disbursement are not met.

At the meeting, representatives of mass organizations analyzed and clarified the causes of the increase in overdue debt, discussed solutions to speed up the disbursement of credit programs, promote production development, effectively reduce poverty, and thereby improve credit quality.

From the capital source of the social policy bank, many poor households have been able to borrow capital to develop livestock farming and escape poverty. Photo: Thu Huyen

Concluding the meeting, Vice Chairman of the Provincial People's Committee Le Xuan Dai acknowledged that the credit activities of the social policy bank have made important contributions to the economic and social development of the province.

In the coming time, it is recommended that the members of the Board of Directors of the Provincial Social Policy Bank actively and effectively mobilize deposit capital and revolving debt collection capital to focus on disbursing to meet the loan needs of poor households and other policy beneficiaries in a timely and sufficient manner. At the same time, there should be measures to resolutely handle overdue debts in cases where there are conditions but they deliberately delay.

The Vice Chairman of the Provincial People's Committee also assigned specific tasks to relevant departments and branches in resolving difficulties and problems in granting rights to use, allocating forest land, approving designs and estimates for forest planting for households that are beneficiaries of capital sources according to Decree 75 of the Government; requested attention to inspecting the use of loans to require households to use loans for the right purposes and effectively; resolutely handling cases of association officials, savings and loan management board officials who encroach, borrow, collect fees, etc.

Thu Huyen