Ky Son voters propose to reduce preferential loan interest rates for households in difficult circumstances
(Baonghean.vn) - Voters of Ky Son district requested the Provincial People's Committee to consult the Social Policy Bank to reduce preferential interest rates. Because the current loan rate for poor households is 0.55%/year, for near-poor households is 0.66%/year, and for households escaping poverty is 0.68%/year, which is still high compared to the payment capacity of households in difficult circumstances.
Reply
Clause 1, Article 18 of Decree No. 78/2002/ND-CP dated October 4, 2002 of the Government on credit for the poor and other policy subjects stipulates: “Preferential loan interest rates are decided by the Prime Minister for each period upon the proposal of the Board of Directors of the Social Policy Bank, with a unified rate nationwide, except for economic organizations subject to the provisions of Clause 3 and Clause 5, Article 2 of this Decree, for which the Board of Directors of the Social Policy Bank decides to differentiate interest rates between regions II and III.
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Transaction office of the Ky Son District Social Policy Bank Branch disburses loans according to Resolution No. 11/NQ-CP dated January 30, 2022 of the Government. Photo: Lu Phu |
Accordingly, the lending interest rates of the policy credit programs of the Social Policy Bank are prescribed by the Prime Minister in each period at the request of the Social Policy Bank, in accordance with the financial capacity of the State.
Decision No. 750/QD-TTg dated June 1, 2015 of the Prime Minister stipulates: lending interest rate for poor households from 0.6%/month (7.2%/year) down to 0.55%/month (6.6%/year); near-poor households from 0.72%/month (9.64%/year) down to 0.66%/month (7.92%/year); households newly escaped from poverty from 0.75%/month (9%/year) down to 0.6875%/month (8.25%/year).
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| Immediately after receiving the capital, Ky Son residents were advised and guided on how to use the capital for the right purpose to achieve high efficiency. Photo: Lu Phu |
In 2021, due to the impact of the Covid-19 pandemic, many borrowers encountered difficulties in repaying debts and interest payments to banks. The Prime Minister issued Decision No. 1990/QD-TTg dated November 26, 2021 on reducing lending interest rates for policy credit programs at the Vietnam Bank for Social Policies. Specifically: 10% reduction compared to lending interest rates for credit programs (including programs for poor, near-poor, and newly escaped poverty households) at the Vietnam Bank for Social Policies; interest reduction period from October 1, 2021 to December 31, 2021.
After December 31, 2021, lending interest rates of policy credit programs at the Vietnam Bank for Social Policies shall comply with current regulations.
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| The delegation of the Vietnam Bank for Social Policies gave gifts to policy families in Ta Ca commune (Ky Son). Photo: Thu Huyen |
At point d, clause 2, section II of Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the Socio-Economic Recovery and Development Program and implementation of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic Recovery and Development Program stipulates: "Interest rate support of 2%/year in 2022 - 2023 for loans with lending interest rates above 6%/year and disbursed by the Bank in 2022 - 2023...".
Accordingly, loans with interest rates above 6%/year and disbursed by the Social Policy Bank in the period 2022 - 2023 will be supported with an interest rate of 2%/year.