POLICY CREDIT INCREASES 6.3 PER CENT IN FIRST HALF OF 2021

As policy credit increased 6.3 per cent in the first half of 2021, Vietnam Bank for Social Policies (VBSP) is committed to harmonising distribution resources for the effective implementation of policy credit programmes.

On July 5, VBSP organised a virtual meeting with 63 branches in cities and localities nationwide to review results in the first six months and identify key tasks for the last six months of 2021.

Speaking at the meeting, VBSP’s director Duong Quyet Thang said that the complicated progress of the coronavirus pandemic has exerted negative impacts on the economy. In this context, VBSP has closely followed guidance from the government, the banking industry, as well as its Board of Directors to fulfil the 2021 missions.

As of June 30, the total policy credit balance reached VND247.34 trillion ($10.75 billion), an increase of VND13.91 trillion ($604.8 million) compared to 2020. Among them, trust funds received from the local budget reached VND23.47 trillion ($1.02 billion), accounting for 9.3 per cent of the total capital, an increase of VND3.15 trillion ($136.96 million) and fulfiling 105 per cent of the 2021 plan.

In the first six months of the year, total loan sales reached VND48.22 trillion ($2.1 billion) with nearly 1.3 million loan packages to poor households, near-poverty households, households just getting out of poverty, and other policy beneficiaries.

By the end of June, total outstanding loans reached VND240.52 trillion ($10.46 billion), an increase of 6.3 per cent compared to the end of 2020, with more than 6.4 million poor, near-poor households and other policy beneficiaries having outstanding loans. Among them, outstanding loans of credit programmes under the growth plan assigned by the prime minister reached VND206.39 trillion ($8.97 billion), up 6 per cent compared to the end of 2020, completing 77 per cent of the target.

The policy credit continues to actively support policy beneficiaries to develop production and business, improve their living standards, and overcome the impact of the COVID-19 pandemic, contributing to poverty reduction, building new countryside, and ensuring social security.

Also, policy credit has timely provided capital for production and business, creating jobs for nearly 249,000 employees, including 1,600 overseas workers. Policy credit also provided education loans to over 16,000 disadvantaged students, was used to develop 879,000 clean water and sanitation facilities in rural areas, as well as build 3,600 houses for policy beneficiaries.

To complete the assigned tasks in the last six months of the year, the general director requested the branches to actively advise the government, ministries, branches, committees, and local authorities to implement Directive No.40-CT/TW and Conclusion No.06-KL/TW dated June 10, 2021 of the Secretariat on strengthening the Party’s leadership in policy credit.

In addition, they should channelise local resources to facilitate multi-dimensional poverty reduction, ensure social security, and build new countryside. All of these efforts are expected to contribute to the successful implementation of the 13th National Party Congress resolution.

VBSP will continue to promote lending to policy credit programmes according to assigned targets, accelerate progress and procedures to promptly support the poor and other beneficiaries of policies, as well as strive to early complete targets assigned by the prime minister.

The bank will also coordinate with relevant ministries and branches to advise the implementation of the PM's decisions. It alsoaims to implement the loan programmes to pay wages for work stoppage as well as to restore production according to the government’s resolution and the PM's decision to help individuals and businesses affected by the COVID-19 pandemic.

VBSP not only focuses on consolidating and improving credit quality but also works closely with authorities and socio-political organisations to monitor natural disasters occurring in localities and the damage caused by the COVID-19 pandemic to promptly support poor households and other policy beneficiaries to stabilise their lives, production, and business.

"VBSP’s branches continue to promote campaigns to complete their assigned political tasks as well as actively respond to patriotic campaigns launched by all levels and sectors. In addition, the branches should take good care of staffs’ lives so they can feel secure in their work and fulfil their assigned tasks, thereby contributing to the overall results of the whole system," said Thang.

Source: VIR