Nghe An Province Experiences Improvement Thanks to Policy-Based Credit Funding
(Baonghean.vn) - In the first six months of this year, despite the complicated developments of the pandemic, policy credit continued to make important contributions to the socio-economic development achievements of the province; the Nghe An Branch was recognized and highly appreciated by the Emulation and Commendation Council of the Vietnam Bank for Social Policies (VBSP), being one of 15 branches nationwide that excellently completed its tasks...
Effective loan models
In 2015, Ms. Nguyen Thi Thanh from Tho Son hamlet, Quy Hop district, started implementing a model of breeding cows, fromcapital sources of the Vietnam Bank for Social PoliciesTo develop the economy, with a loan of 50 million VND, Ms. Thanh's family boldly invested in buying 3 breeding cows. Although a poor household in Tho Hop commune, with her hardworking and inquisitive nature, Ms. Thanh always registered to participate in training courses on basic production and livestock farming whenever the commune organized training sessions.
Thanks to this, after only 3 years of raising cattle, Ms. Thanh's family's herd increased by 5 cows. After raising them for a while, she sold 4 cows, earning over 100 million VND. With the profit from raising cattle, she continued to invest in raising pigs, chickens, and goats. After 5 years of diversifying her livestock farming models with loans from the District Social Policy Bank, Ms. Thanh's family has repaid their debt, escaped poverty, and become a well-off household in Tho Son hamlet, Tho Hop commune.
Also in Tho Son commune (Quy Hop district), Mr. Vi Van Duyen borrowed money.The program provides 100 million VND to near-poor households.Initially, Mr. Duyen bought 6 cows, and now his family owns 10. Thanks to efficient livestock farming, Mr. Duyen's family has been able to repay their loans in full.
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| Many farm-based economic models in Quy Hop were established with loans from the Vietnam Bank for Social Policies (VBSP). Photo: TH |
Adhering closely to the targets set by the Provincial Social Policy Bank at the beginning of the year, the District Social Policy Bank has coordinated with entrusted political and social organizations to disburse funds promptly. Loan disbursements from the beginning of the year to date have reached over 127 billion VND. Some programs have seen large loan disbursements, such as: loans to near-poor households (41 billion VND), poor households (23 billion VND), production and business (43 billion VND), and rural water and sanitation (nearly 8 billion VND)... Loans have been disbursed under 16 policy credit programs to 12,418 borrowers. The timely allocation of funds to the People's Committees of communes and towns has significantly boosted the disbursement of credit programs, preventing any capital stagnation.
Recently, the Covid-19 pandemic has been extremely complex and widespread, significantly impacting all aspects of socio-economic life and branch operations. However, many branches have overcome difficulties to maintain good operations. Along with deposit and lending activities, many transaction offices in Quy Hop, Nam Dan, etc., have consistently focused on transactions at commune-level transaction points, ensuring that machinery, equipment, and other supporting tools are fully equipped to facilitate effective transactions. The branches have strictly implemented local and industry directives on pandemic prevention and control. They have fully equipped themselves with pandemic prevention tools, implemented hand sanitization, temperature checks, and social distancing measures for all customers visiting for transactions.
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| Members of a savings and loan group in Chau Thai commune, Quy Hop district, view loan information at the commune's People's Committee office. Photo: TH |
Expedite the disbursement of support funds for businesses and workers.
Mr. Tran Khac Hung, Director of the Vietnam Bank for Social Policies (VBSP) in the province, stated: The pandemic has severely impacted the socio-economic situation. Facing these difficulties, the Provincial and District Boards of Directors have directed VBSP branches and entrusted political and social organizations at all levels to effectively implement the dual objective of "combating the pandemic while fulfilling professional duties." They have successfully implemented the policy of transferring budget funds to the VBSP for lending to poor households and policy beneficiaries. In the first six months of the year, the entire province received 28.6 billion VND from local budgets at all levels and entrusted funds from organizations and businesses to the VBSP for preferential lending to poor households and policy beneficiaries in the area, achieving 114.3% of the central government's assigned plan.
The Provincial and District Boards of Directors promptly allocated the growth targets for policy credit programs in 2021, as announced by the Central Government, in accordance with the needs and implementation capacity of each locality, totaling 414 billion VND; and simultaneously adjusted capital from programs with reduced needs to programs with increased needs. Specifically: 79 billion VND was transferred from the loan program for poor households to the loan program for near-poor and newly-escaped-poverty households; 17 billion VND was transferred from the student loan program to the loan program for newly-escaped-poverty households and the rural clean water and sanitation program.
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| Graphics: Lam Tung |
As of June 30, 2021, the total capital of the Vietnam Bank for Social Policies (VBSP) reached VND 9,671 billion, an increase of 7.15% compared to the same period last year; the total outstanding loans reached VND 9,643 billion across 20 policy credit programs, an increase of VND 635 billion compared to the beginning of the year, achieving a growth rate of 7.05%, fulfilling the credit growth target for 2021 as set forth in the Resolution of the Provincial Board of Directors.
Policy credit funds have provided capital to 43,854 poor households and other policy beneficiaries, and many businesses have received loans to pay wages to laid-off workers. In implementing the directives of the Vietnam Social Policy Bank regarding support for borrowers facing difficulties in repaying loans due to the impact of the Covid-19 pandemic, the branch promptly implemented solutions to facilitate customers, such as: restructuring repayment terms for 768 customers/19.3 billion VND; providing additional loans to implement production and business plans and create jobs for 482 customers, totaling 21.2 billion VND.
Recently, the Nghe An Provincial Branch of the Vietnam Bank for Social Policies (VBSP) disbursed the first 0% interest loan package under Resolution 68 and Decision 23 to a business in the province. This is a healthcare business located in Yen Thanh district, with a total of 35 employees, 28 of whom are covered by social insurance and meet the eligibility criteria for a loan to pay wages and restore production as stipulated.
The total loan amount for this business over 3 months is 245 million VND, with a loan term of 11 months and an interest rate of 0%.
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| The Yen Thanh District branch of the Vietnam Social Policy Bank signed a loan agreement to support businesses in recovering production after the Covid-19 pandemic. Photo: TH |
Mr. Phan Huu Trang, Director of the Yen Thanh District Branch of the Vietnam Bank for Social Policies, said: "This is a preferential loan package with a 0% interest rate and no collateral required, with a loan term of less than 12 months. Accessing this loan will help businesses affected by the Covid-19 pandemic in Yen Thanh district overcome difficulties and stabilize production."
According to information from the Nghe An Provincial Branch of the Vietnam Bank for Social Policies, as of now, three businesses in Nghe An province have had their applications for preferential loans approved under Resolution 68 and Decision 23; and the loan funds will be disbursed as soon as possible.
In the coming period, the Board of Directors and the Social Policy Bank at all levels will continue to direct and organize the timely implementation of credit policies for lending to employers to pay wages for employees who have stopped working or to restore production due to the impact of the Covid-19 pandemic, in accordance with Resolution No. 68/NQ-CP dated July 1, 2021 of the Government and Decision No. 23/2021/QĐ-TTg dated July 7, 2021 of the Prime Minister. They will also direct the rapid disbursement of funds for these programs, meeting the needs for production and social welfare loans for poor households and policy beneficiaries.
