Nghe An focuses on mobilizing capital sources for social policy credit

Trong Phuc Garment Company Limited in Dien Chau received a loan from the Vietnam Bank for Social Policies with a 0% interest rate to pay workers who have stopped working during the Covid-19 pandemic. Photo: Thu Huyen

Strong capital growth

Mr. Tran Khac Hung - Director of the Provincial Social Policy Bank said: Adhering to the Resolution of the Board of Directors and the regular Resolution of the Board, the Board of Directors at the provincial and district levels has directed the Social Policy Bank Branches and socio-political organizations entrusted to effectively implement key tasks. In the third quarter, capital increased by 234 billion VND, the accumulated capital in the first 9 months increased by 1,101 billion VND, the growth rate reached 11.3%; Total capital to date has reached 10,783 billion VND. Of which, the capital of 5 policy credit programs implemented under Resolution No. 11 of the Government on lending for economic recovery and development reached 481.5 billion VND.

Mr. Pham Van Kieu's family in Hong Phong hamlet, Luu Son commune (Do Luong) borrowed capital from the Social Policy Bank to invest in aluminum and glass making machines. Photo: Thu Huyen

Do Luong District Policy Bank is considered one of the units that do well in capital mobilization. Mr. Nguyen Huu Ky - Director of Do Luong District Policy Bank said: The mobilization of savings deposits through the group has been maintained stably, poor households and other policy beneficiaries have clearly understood the purpose and meaning of depositing money to create a source of accumulation to repay debts when due as well as pay interest when borrowers encounter financial difficulties. By the beginning of October, the balance of savings deposits through the savings and loan groups reached more than 38 billion VND, with a growth rate of 8.43%.

Regarding the mobilization of savings deposits at market interest rates, although it has not been implemented for a long time and has faced fierce competition from credit institutions in the area, the results since the beginning of the year have been very positive. The Social Policy Bank of Do Luong district assigned the district-level trust units to coordinate with the Bank to assign targets to the commune-level trust units. Based on the assigned targets, the commune-level trust units have focused on promoting to economic sectors in the area that have idle capital to deposit at the District Social Policy Bank Transaction Office.

Ms. Lang Thi Luyen's family in Tong Xan village, Thach Ngan commune (Con Cuong) borrowed capital from the Social Policy Bank to build a house and develop the economy. Photo: Thu Huyen

For mountainous areas, Con Cuong is one of the localities with high capital mobilization results; Total capital by early October reached more than 532 billion VND, a very high growth rate of 12.67%. In addition to local budget capital and central capital, Con Cuong also mobilized well through individual organizations and savings and loan groups.

Growing capital and good debt collection rates create a stable revolving capital source, helping communes proactively source loans to meet the borrowing needs of poor households and policy beneficiaries in the area. Con Cuong's loan turnover as of September 30, 2022 reached more than 114 billion VND; with 2,627 customers receiving credit capital since the beginning of the year. Large loan turnover mainly focuses on poor households with 34 billion VND; near-poor households with 22 billion VND, lending for production and business in difficult areas with a loan turnover of 13 billion VND, lending for clean water and rural environmental sanitation with a loan turnover of 12 billion VND, lending for job creation with 10 billion VND, etc.

Staff of the Con Cuong District Social Policy Bank guide people to borrow policy loans. Photo: Thu Huyen

Ms. Nguyen Thi Ngoc - Deputy Director of the Con Cuong District Social Policy Bank said: Over the past years, the loan programs for poor households, near-poor households, and newly escaped poverty households have had high outstanding loans and very strong growth rates. In 2022, implementing the Government's Resolution 11 loan package, Con Cuong will deploy a social housing loan package under Decree 100/2015, which also creates jobs very well. The current outstanding loan of the social housing loan program under Decree 100/2015 is nearly 17 billion VND; In 2022, it will grow by more than 11 billion VND.

Focus on allocating budget trust funds in 2023

Assessing the performance of the Social Policy Bank, Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An branch, said: In the first 9 months of the year, while the mobilized capital of the whole province reached 188,772 billion VND, achieving a growth rate of 7.6%, the growth rate of the Social Policy Bank's capital reached 11.3%, which is very good.

In addition, credit lending continued to remain 1.91% higher than the same period last year, completing the annual growth target set by the Board of Representatives. Of which, 4/5 programs under Resolution No. 11 have been disbursed, reaching a balance of VND 310.7 billion, completing 93.7% of the assigned target (the lending program for ethnic minority mountainous areas has not yet been disbursed).

Con Cuong Social Policy Bank disburses in Thach Ngan commune. Photo: Thu Huyen

However, the circulation of storm No. 4 caused heavy rain, flooding, flash floods, landslides in the districts, causing heavy damage to people and property, making life difficult for people in the disaster-affected areas, affecting debt collection, interest collection and transaction activities in communes in the districts affected by the disaster. The disbursement of VND 150 billion according to Resolution 28 is slow, there needs to be solutions to remove difficulties and speed up progress...

Recently, at the regular meeting to direct year-end tasks, Standing Vice Chairman of the Provincial People's Committee, Head of the Provincial Social Policy Bank Representative Board Le Hong Vinh requested members of the Provincial Department of Finance and the Provincial Social Policy Bank to advise the Provincial People's Committee on arranging the budget trust capital source for 2023 and direct the district-level People's Committees to implement the assigned local budget trust source target.

Graphics: Huu Quan

Regarding the capital source of 150 billion VND according to Decree No. 28/2022/ND-CP dated April 26, 2022 of the Government, the Head of the Board of Directors of the Provincial Social Policy Bank requested the Provincial Ethnic Committee to advise the Provincial People's Committee to direct the People's Committees of districts to promptly review and approve the list of beneficiaries of policy credit as a basis for disbursing capital, promptly supporting capital needs for production and stabilizing the lives of policy beneficiaries. It is necessary to promptly notify the allocation of additional capital in 2022 to districts, cities and towns (190 billion VND) to quickly disburse capital for programs, striving to complete the disbursement work before November 30, 2022.

Standing Vice Chairman of the Provincial People's Committee Le Hong Vinh chaired the 73rd regular meeting of the Board of Directors of the Vietnam Bank for Social Policies. Photo: Thu Huyen

Comrade Le Hong Vinh also requested that members of the district-level representative board, who are the Chairmen of the commune-level People's Committees, fully perform their roles and responsibilities in implementing, managing, and supervising policy credit capital sources in the locality, ensuring loans are given to the right subjects, capital is used for the right purposes, and efficiency is promoted; inspecting and supervising the implementation of preferential credit programs according to Resolution No. 11 and the 2% interest rate support package, avoiding policy exploitation.

The entrusted socio-political organizations continue to do a good job of propaganda and mobilization of people to actively participate in depositing savings into the provincial Social Policy Bank. Guide borrowers to complete their application documents in full and in accordance with regulations; prevent overlapping lending programs, loans exceeding the limit, households with many borrowers, etc.

Comrade Le Hong Vinh - Permanent Vice Chairman of the Provincial People's Committee, Head of the Provincial Representative Board of the Vietnam Bank for Social Policies