Nghe An Social Policy Bank: Implementing social security well

(Baonghean) - With a total managed capital of over VND 6,089 billion, an increase of VND 362 billion compared to the beginning of the year, the Social Policy Bank (SPB) of Nghe An province is one of the units with large outstanding loans in the whole system. Capital through the SPB has really made an important contribution to the implementation of the goal of hunger eradication, poverty reduction, and ensuring social security in the whole province...

The Social Policy Bank is a State credit institution with an organizational system from the central to local levels, operating not for profit, assigned by the Government to manage policy credit capital for investment in the goals of hunger eradication, poverty reduction and ensuring social security. Together with the entire system, after 11 years of operation, up to now, the Social Policy Bank of Nghe An province has a network of operations in 21 districts, towns and cities, with 480 transaction points located at the People's Committees at the commune level, with 8,154 savings and credit groups operating in 100% of hamlets and villages in the whole province. In 2013, although the domestic economic situation was still difficult, under the direction of the Board of Directors and the Board of General Directors, closely following the socio-economic development goals and ensuring social security of the province, the People's Credit Fund of Nghe An province still maintained a good growth rate, well meeting the capital source for production development needs, meeting the essential needs of housing, education, environmental improvement... of poor households and other policy beneficiaries in the whole province.

Officers of the Dien Chau Department of Education and Training guide student loan procedures for the 2013-2014 school year. Photo: Huu Nghia

By the end of 2013, Nghe An Social Policy Bank was implementing 15 preferential credit programs, including 12 programs assigned by the Government and 3 preferential credit programs entrusted locally, with a total managed capital of 6,089 billion VND, an increase of 362 billion VND compared to 2012. As a branch with a large outstanding debt, there are still many policy beneficiaries in the area, so the unit's disbursement and debt collection activities during the year were very large, showing:

Loan turnover reached 1,628 billion VND, the programs with large disbursement turnover were loans for poor households of 618 billion VND, loans for students of 378 billion VND and loans for near-poor households of 313 billion VND. Debt collection turnover reached 1,281 billion VND, debt collection capital accounted for 78% of disbursed capital, helping the unit to be proactive in capital sources, while reducing pressure on the state budget.

In 2013, in addition to ensuring good regular activities of disbursement - debt collection - interest collection - credit growth, the People's Credit Fund of Nghe An province determined that it is necessary to focus on improving credit quality by solutions, focusing on improving the quality of operations of the savings and credit group network; the quality of entrusted credit; handling and recovering well due debts, long-standing bad debts, and improving the quality of transaction activities at the commune level. Thanks to that, up to now, 98% of the outstanding loans of the Nghe An Social Policy Bank have been entrusted with some stages through 4 socio-political organizations (Farmers' Association, Women's Association, Veterans' Association, Youth Union), the network of Savings and Credit Groups has been established in all villages, the Group Management Board is enthusiastic, has good moral qualities, is dedicated, always guided and trained by the bank and socio-political organizations in professional skills, so they have promoted their role and function well in transferring capital to poor households and policy beneficiaries, helping poor households access financial services, as well as monitoring the process of using loans, promptly grasping the aspirations of poor households and policy beneficiaries. Borrowers fulfill their debt repayment and interest payment obligations well, so bad debt continues to be controlled at a low level, accounting for only 0.36% of total outstanding loans.

In recent years, preferential credit capital has helped nearly 1 million poor households and other policy beneficiaries borrow capital from the VBSP, of which over 500,000 poor and near-poor households have borrowed capital to develop production, contributing to helping 70,000 poor households overcome the poverty line; attracting and creating jobs for 15,000 workers; more than 170,000 students in difficult circumstances have borrowed capital to study; nearly 8,000 workers have been able to go abroad to work; 75,000 households in rural areas have borrowed capital to build clean water and sanitation works to improve the environment, and 26,000 poor households have borrowed capital to build houses. The Government's preferential credit programs implemented by the VBSP are truly an important capital channel, a "midwife" for poor households and policy beneficiaries, especially those in remote, isolated and extremely disadvantaged areas. The effectiveness of preferential credit programs implemented by the VBSP has affirmed that the Government's investment resources for the poor and policy beneficiaries are an important solution to stimulate the poor to produce, raise livestock, develop the economy, improve the quality of life, and raise the intellectual level of the people. From there, it helps them gradually escape poverty and become rich, integrate into the community, contributing to promoting sustainable economic development, social stability, strengthening people's trust in the Party and the State and building a fair, democratic and civilized society.

Entering 2014, the final year of focusing on achieving the goals and targets of the Party Congress resolutions at all levels, including the target of hunger eradication and poverty reduction; the first year of implementing Resolution 26-NQ/TU of the Politburo on the direction and tasks of developing Nghe An province until 2020 and Decision No. 2355/QD-TTg of the Prime Minister on the Project for developing Western Nghe An until 2020, the goal set by the Social Policy Bank of Nghe An province is to increase capital and outstanding loans by 7-10% compared to 2013; develop branches in a stable and sustainable manner; meet the capital needs of poor households, near-poor households and other policy beneficiaries, actively contributing to the implementation of the national goal of hunger eradication and poverty reduction and ensuring social security in the province.

Continuously focus on improving credit quality, overdue debt below 0.5% of total outstanding debt. Strengthen inspection and supervision of policy credit management at all levels, down to borrowers to strictly manage and ensure capital safety and improve capital use efficiency. Coordinate with socio-political organizations and commune-level authorities to promote the dissemination of the State's policies and guidelines on preferential credit for poor households and other policy beneficiaries to the people, helping people to access and fully enjoy them as well as enhance the responsibilities and obligations that people must fulfill when enjoying preferential policies of the Party and State.

Tran Khac Hung(Director of Provincial People's Credit Fund)