Nghe An Social Policy Bank improves the quality of savings and loan group activities

Thu Huyen• DNUM_BGZAHZCABJ 07:07

(Baonghean) - In the first 6 months of 2019, the Social Policy Bank, Nghe An branch, achieved many outstanding achievements. Mr. Tran Khac Hung - Director of the Social Policy Bank, Nghe An branch, talked with Nghe An Newspaper reporters about this field.

PV:To meet the needs of policy subjects in the area, the important issue is to ensure capital sources. SoCould you tell us about the capital situation recently?
Mr. Tran Khac Hung:The Board of Directors at all levels has promptly allocated additional capital assigned by the Central Government, thereby promoting the disbursement of credit programs without backlog, specifically: The capital announced by the Central Government to be additional in the second quarter of 2019 was VND 80.8 billion; in the first 6 months of the year, the central government allocated VND 559.8 billion (up 2.3% over the same period last year).

By June 30, all basic capital sources had been disbursed, except for the housing loan program for poor households under Decision 33 and the social housing loan program.

In general, basic capital meets the needs of policy subjects in the area.

Phòng giao dịch ngân hàng CSXH Diễn Châu giải ngân vốn chương trình cho khách hàng. Ảnh: Việt Phương

Dien Chau Social Policy Bank transaction office disburses program capital to customers. Photo: Thu Huyen

PV:Currently, Nghe An is implementing 19 policy credit programs. So what are the results of the credit programs, sir?

Mr. Tran Khac Hung:As of June 30, there were 19 policy credit programs being implemented in the province with a total capital of VND8,237 billion, an increase of VND226 billion in the quarter and VND485 billion compared to the beginning of the year, a growth rate of 6.26%.
Loan turnover in the first 6 months of the year reached 1,657 billion VND, up 13% over the same period last year.

Large loan sales mainly focus on key programs for poor, near-poor, newly escaped poverty households, rural and disadvantaged areas.
In addition, new credit programs are being vigorously implemented to meet the needs of poor households and policy beneficiaries.

Implement the policy of increasing the loan limit and maximum loan term to serve production for poor households, near-poor households, newly escaped poverty households and ethnic minority households according to Decision No. 12/QD-HDQT dated February 22, 2019 of the Board of Directors in a timely manner. The implementation is carried out closely, publicly and transparently.

In the first 6 months of the year, policy credit capital provided capital to 43,094 poor households, near-poor households and other policy beneficiaries to invest in production and business, serving essential needs of life.

Policy credit continues to make important contributions to help poor households and policy beneficiaries develop the economy, improve their lives, contribute to the goal of poverty reduction, new rural construction and stabilizing security and politics in the locality.

Loan sales of some major 6-month programs in Nghe An. Graphics: Thu Huyen

PV:Commune transaction points are the main place where transactions with customers of the Social Policy Bank arise. Therefore, in order to serve customers better and better, what solutions has the Branch had to improve transaction quality?

Mr. Tran Khac Hung:In addition to continuing to innovate machinery and equipment; regularly updating and upgrading commune transaction software; strictly following the transaction schedule; transaction activities at the commune are monitored via the online camera system; monthly inspection, assessment and scoring; organizing meetings with local authorities, entrusted organizations and TKVV groups at transaction points periodically to inform about the results and implementation status of policy credit programs, etc.

Thanks to that, the quality of transaction activities in the commune has been continuously improved, reflected through indicators reflecting transaction activities such as: disbursement (97%), debt collection (83%), interest collection (98%), savings collection (96%); fast transactions, saving time for customers; increasing customer satisfaction,...

Ms. Le Thi Xoan in Hoang Tru 1 hamlet, Kim Lien borrowed policy capital to raise breeding cows. Photo: Thu Huyen

PV:Trust activities and the network of credit institutions play a very important role in the credit quality of policy banks. Could you elaborate on the operation of this network?

Mr. Tran Khac Hung:In recent times, the entrusted units have done a good job in loan evaluation, debt collection and credit quality management. Debt collection turnover in the first 6 months reached 1,170 billion VND; outstanding loans entrusted through socio-political organizations reached 8,200 billion VND, accounting for 99.73% of the total outstanding loans of the entire branch.
The association at all levels has coordinated with the Bank to closely monitor the activities of the TKVV network, closely monitor the development of criteria for evaluating the activities of the TKVV groups every month to take timely corrective measures; at the same time, regularly coordinate and review to advise the People's Committee at the commune level to merge and consolidate ineffective groups (due to low scale in terms of number of members and outstanding loans, inactive group management boards, etc.).

Thanks to that, the network of credit organizations continues to operate stably, promoting its role as a focal point for managing policy credit capital sources in villages and hamlets.

Công trình nước sinh hoạt được đầu tư từ vốn vay NHCS của gia đình anh Bùi Xuân Đại ở thôn 5, Hội Sơn (Anh Sơn). Ảnh: Thu Huyền

The domestic water project was invested from the NHCS loan of Mr. Bui Xuan Dai's family in village 5, Hoi Son (Anh Son). Photo: Thu Huyen

PV:The results achieved are very remarkable, however, the tasks for the last 6 months of the year are very heavy. To fulfill the tasks set out for the year, what solutions does the Branch need in the coming time, sir?

Mr. Tran Khac Hung:In the coming time, in addition to strictly maintaining the regular working regime and promptly supplementing and perfecting the apparatus of the Representative Board when there are personnel changes, we will continue to effectively direct the implementation of the contents of Directive No. 29 of the Provincial Party Committee and Plan No. 463 of the Provincial People's Committee.

Pay attention to maximizing capital channels from central to local levels, continue to submit to the central government additional capital sources for lending to programs that have completed their planned targets, focus on receiving capital sources from local budgets and actively mobilize capital sources according to market interest rates, in order to complete the target of capital growth and outstanding debt in 2019 of over 7%.

Advise and assist the Board of Directors to complete the monitoring plan; strengthen the inspection of the department; review, analyze, evaluate and classify bad debts and overdue debts to have appropriate solutions for handling and management; strengthen inspection and closely monitor the use of capital by customers. Coordinate with the provincial association to direct the district and commune association organizations to step up inspection and supervision work, strengthen thematic inspections; direct the commune association organizations to inspect 100% of new loans within 30 days after disbursement to prevent, detect and promptly recover errors and violations (if any), etc.

The branch will also regularly pay attention to improving, rectifying and improving the quality of operations of the TKVV team, raising the rate of good teams to at least 94%, and weak teams to less than 0.1%; directing the commune-level association to seriously participate in the activities of the TKVV team to direct and supervise the loan evaluation to improve the quality of lending right from the evaluation stage./.

PV:Thank you!