Ky Son: Discussing solutions for entrusting loans for social credit

(Baonghean.vn) - On the morning of March 11, the Standing Committee of Ky Son District Party Committee held a conference to discuss solutions to direct and coordinate the implementation of loan entrustment between the Social Policy Bank and mass organizations.

Attending the meeting were representatives of the provincial Social Policy Bank; leaders of the Farmers' Association, Women's Union, Veterans' Association, Provincial Youth Union, comrades in the Standing Committee of the District Party Committee, representatives of the Social Policy Bank, members of the Representative Board and member organizations of the district Social Policy Bank. Comrade Vi Hoe - Provincial Party Committee member, Secretary of the Ky Son District Party Committee chaired the meeting.

Overview of the working session

As of December 31, 2014, the loan turnover at the Transaction Office of the Social Policy Bank reached 31,712 million VND, the total outstanding debt reached 190,946 million VND, being the only unit in the entire branch with comprehensive entrusted debt through socio-political organizations.

However, the annual lending and debt collection turnover tends to decrease gradually, credit quality is slowly improving, bad debt is the highest in the province and tends to increase quite rapidly. As of December 31, 2014, overdue debt was 2,055 million VND, accounting for 1.08%, of which debt entrusted by the Farmers' Association was 1,253 million VND, accounting for 1.24%; Women's Association 312 million VND, accounting for 0.52%; Veterans Association 260 million VND, accounting for 1.51%; Youth Union 231 million VND, accounting for 1.72%. In addition, the risk of bad debt is still quite high compared to reality because many uncollectible debts are still within the term, debts due to borrowers who illegally migrated to Laos have no one to claim the debt and have not yet reached the due date, many debts of borrowers who are still alive but too poor. Of these, 345 loans with the amount of VND 2,581 million are likely to be unrecoverable because the borrowers left the locality with unknown addresses, migrated to Laos, China, went to prison, etc.

At the conference, representatives of the member organizations of the District Social Policy Bank frankly acknowledged the advantages, difficulties as well as the lack of synchronization in the coordination between the Social Policy Bank Representative Board and member organizations; suggesting many solutions to better implement the work of entrusting loans from the Bank in the coming time.

Concluding the working session, Comrade Vi Hoe - Member of the Provincial Party Committee, Secretary of the Ky Son District Party Committee acknowledged the positive contributions in the work of coordinating the loan entrustment between the Social Policy Bank and socio-political organizations, especially in the work of hunger eradication and poverty reduction. Pointed out the existing limitations and causes, and at the same time proposed practical solutions for the Standing Committee of the District Party Committee to better implement the work of coordinating the entrustment in the coming time. He emphasized: The Representative Board of the District Policy Bank needs to review and improve the quality of loan groups, screen and select enthusiastic and responsible loan group leaders to effectively manage the loan capital as well as the purpose of use of the borrower. Strengthen the work of inspection and supervision, timely forecast, detect and handle promptly to minimize overdue debt, bad debt and loss of capital.

This conference aims to find solutions to effectively implement Directive 33 CT-HU, dated January 27, 2015 of the Standing Committee of Ky Son District Party Committee "On strengthening the Party's leadership over social policy credit in Ky Son district".

Hoang Minh