Nghe An: Over 40,000 beneficiaries of social policies receive preferential loans.

On the morning of July 9th, the Board of Representatives of the Social Policy Bank held its 64th regular meeting to discuss the operational plan for the third quarter of 2020. Comrade Le Hong Vinh - Member of the Standing Committee of the Provincial Party Committee, Permanent Vice Chairman of the Provincial People's Committee, and Head of the Board of Representatives - presided over the meeting.

Members of the Board of Directors' Representative Committee of the Social Policy Bank of the province attend the 64th regular meeting. Photo: Thu Huyen

Adhering closely to the resolutions of the Provincial Board of Directors' Representative Committee in its meetings, the Executive Board of the Provincial Branch of the Social Policy Bank has advised the Board of Directors' Representative Committee and coordinated with relevant units and organizations to effectively implement key tasks.

The provincial branch of the Social Policy Bank and its district-level transaction offices have actively advised the Board of Representatives to effectively implement the Provincial People's Committee's directive on allocating budget targets for entrusted lending. In the first six months of the year, the entire province's budget at all levels transferred 24 billion 367 million VND, completing 97.47% of the central government's annual plan.

Officials from the Social Policy Bank suggested that the Department of Labor, War Invalids and Social Affairs should effectively implement Circular 17 in reviewing and updating the list of poor and near-poor households as a basis for these groups to access policy credit funds in a timely manner. Photo: Thu Huyen

As of June 30, 2020, the total policy capital reached VND 8,882 billion, an increase of VND 506 billion compared to 2019, achieving a growth rate of 6.04%. Loan disbursements totaled VND 1,653 billion, equivalent to the same period in 2019. Debt collection reached VND 1,147 billion, accounting for 69.4% of loan disbursements, making a significant contribution to creating a stable and proactive revolving loan capital source at the local level, meeting the borrowing needs of poor households and policy beneficiaries under conditions where central government funding is facing difficulties.

Graphics: Huu Quan

As of June 30, 2020, the total outstanding loan balance reached VND 8,865 billion, an increase of VND 504 billion compared to the beginning of the year, achieving a growth rate of 6.03% (a 5.7% increase compared to the same period last year). Programs allocated additional capital and programs allowing loan growth based on needs were all accelerated in terms of disbursement and increased outstanding loans compared to the beginning of the year. Several programs showed good loan growth rates, such as: social housing loans, loans to support poor households with housing, loans to support employment and job creation, loans to newly lifted-out-of-poverty households, and loans to production and business households in disadvantaged areas...

Permanent Vice Chairman of the Provincial People's Committee Le Hong Vinh speaks at the meeting. Photo: Thu Huyen.

Concluding the meeting, the Standing Vice Chairman of the Provincial People's Committee, Le Hong Vinh, acknowledged and highly appreciated the achievements of the Board of Representatives of the Social Policy Bank. In the first six months of 2020, the Nghe An Provincial Branch of the Social Policy Bank provided preferential credit to 40,813 poor households and other policy beneficiaries; policy credit continued to make important contributions to the socio-economic development of the province. Despite the difficult economic conditions due to the negative impacts of the Covid-19 pandemic and drought, bad debts continued to be tightly controlled and decreased compared to the beginning of the year.

Shrimp farming model on sandy soil using loans from the Social Policy Bank in Dien Trung commune (Dien Chau district). Photo: Thu Huyen

The Head of the Board of Directors' Representative Committee suggested that in the coming period, it is necessary to take advantage of capital from the Central Government; actively implement the work of mobilizing deposit capital and revolving debt recovery capital to focus on disbursing funds to meet the borrowing needs of poor households and other policy beneficiaries, especially loans for production recovery after the pandemic.

The entrusted organizations are responsible for directing and implementing the loan application review process effectively, ensuring transparency, democracy, and accuracy. They should focus on recovering and handling overdue debts; and advise Party committees and authorities on more decisive measures to address cases where borrowers have the means to repay but deliberately delay or procrastinate, as well as those who misuse funds.