VBSP disburses nearly 8,900 billion VND in preferential capital for economic recovery

Hanoi (VNA) - The Vietnam Bank for Social Policies (VBSP) held a conference to deploy tasks in the last months of 2022 in Hanoi on July 2.

General Director Duong Quyet Thang said that as of June 30, the Bank for Social Policies had disbursed 8,896 billion VND of preferential loans under the socio-economic recovery and development programme under Resolution No.11, with more than 213,000 borrowers.

In which, loans to support job creation are worth 6,832 billion VND with 142,359 customers; loans for students to buy computers and equipment for online learning 654 billion VND for 65,593 customers. Meanwhile, 1,259 billion VND in loan for renting and buying social housing, housing for workers, building new or renovating and repairing houses according to Decree No. 100/2015/ND-CP of the Government is provided to 4,050 borrowers; and 151 billion VND in loans to non-public preschools and primary schools affected by the COVID-19 pandemic is provided to 1,851 customers.

In addition, in the context of the COVID-19 pandemic, implementing the loan policy for employers facing difficulties due to the COVID-19 pandemic according to Decision No. 23/2021/QD-TTg and Decision No. 33/2021 /QD-TTg, the Bank for Social Policies has actively coordinated with relevant agencies to timely deploy loans to employers to pay wages to employees when they stop working and after recovering production. From the start of implementation to the end of the disbursement on March 31, 2022, 63 provincial and city branches of the bank disbursed 4,787 billion VND to 1,548 employers to pay salaries for more than 1.2 million workers.

The Bank for Social Policies has drastically organised the implementation of the policy quickly and in a timely manner to the beneficiaries, actively contributing to promoting the effectiveness of the policy.

As of June 30, total social policy credit capital reached 286,169 billion VND, an increase of 29,844 billion VND (11.6%) compared to 2021. In which, entrusted capital from the local budget totalled 28,394 billion VND, up 3,692 billion VND; total outstanding loans of social policy credit reached 273,541 billion VND, an increase of 25,384 billion VND (10.2%) compared to 2021, benefiting more than 6.4 million poor households, near-poor households and other policy beneficiaries. Outstanding balance of credit programmes under both the annual plan assigned by the Prime Minister and Resolution No.11 reached 230,410 billion VND, an increase of 20,536 billion VND (9.8%) compared to the end of 2021.

Total loan balance of the whole system amounted to 62,966 billion VND, an increase of 14,968 billion VND compared to the same period in 2021, reaching nearly 1.5 million turns of poor households, near-poor households and other policy beneficiaries. Social policy credit has supported production and business activities, created jobs for nearly 495,900 employees, helped more than 3,100 labourers work abroad for a definite time and more than 12,800 students in difficult circumstances get loans to study; built nearly 921,000 clean water and sanitation works in rural areas; and constructed 703 houses for poor households and more than 4,400 social houses for policy beneficiaries.

By June 30, the ratio of overdue debt and charged-off debt of the whole system accounted for 0.7% of total outstanding loans, of which overdue debts accounted for about 0.2% of total outstanding loans.

From now until the end of the year, General Director Thang requested all the branches to push ahead with the implementation of the yearly credit growth plan targets assigned by the Prime Minister Pham Minh Chinh, and the credit programme under Resolution No. 11/NQ-CP.

At the same time, they should coordinate with Party committees, local authorities and entrusted socio-political organizations to synchronously implement solutions to strengthen and improve credit quality in the whole system of the bank.

He also required that the bank intensify inspection, improve the quality of debt management and focus on digital transformation in the last months of 2022./.