In the first quarter of 2024, the provincial branch of the Social Policy Bank focused on flexibly implementing solutions to disburse social policy credit funds to eligible beneficiaries, ensuring the completion of the set plan.
Based on the allocated credit capital targets, the provincial branch of the Social Policy Bank promptly reported to the Provincial People's Committee, advising the Head of the Board of Directors to assign targets to districts and cities; at the same time, directing subordinate units to actively coordinate with local authorities, associations, and organizations entrusted with reviewing loan applications to ensure compliance with regulations and accelerate the disbursement of credit programs, in order to promptly meet the borrowing needs of the people. In the first three months of 2024, the total loan volume of the entire system reached over 331.8 billion VND, with over 7,000 poor households, near-poor households, and other policy beneficiaries receiving loans for production and business investment; supporting job creation, maintenance, and expansion for 900 workers; and providing loans to over 1,450 households for the construction and repair of toilets and the installation of clean water facilities. Over 2,600 households received loans to cover the educational expenses of students... This increased the total outstanding balance of credit programs to VND 3,619.1 billion as of March 31, 2024, a rise of VND 108.3 billion compared to 2023, with over 81,400 customers/105,772 loan transactions.
With loans from the Social Policy Bank, women in Loi Hai commune (Thuan Bac district) are receiving assistance.
Investing in livestock development. Photo: Hong Lam
Comrade Le Minh Loc, Director of the Provincial Branch of the Vietnam Social Policy Bank, stated: To achieve these results, the branch has consistently adhered to the objectives of the Board of Directors and the General Director of the Vietnam Social Policy Bank, along with the leadership and guidance of the Provincial Party Committee, the Provincial People's Council, and the Provincial People's Committee, contributing to the successful implementation of all aspects of operations. In addition, the unit has proactively coordinated with local authorities at all levels to consolidate and improve the quality of operations of 1,622 Savings and Loan Groups; fully equipped 65 commune transaction points with machinery and equipment; simplified loan procedures; and created favorable conditions for poor households, near-poor households, and other policy beneficiaries in the province to access loans when needed and eligible.
Alongside the plan to accelerate capital disbursement, and to ensure borrowers comply well with the Party and Government 's policies on social policy credit, the branch offices of the Social Policy Bank in the districts actively coordinate with media agencies and mass organizations to disseminate information on loan contents, rights and responsibilities in using capital, and to fully implement regulations on principal and interest repayment, thereby stimulating revenue and creating revolving loan capital. Accordingly, debt collection reached VND 223.6 billion, with overdue and non-performing loans currently amounting to VND 38.3 billion, accounting for 1.06% of the total outstanding loan balance. In addition, internal inspection and control work continued to be strengthened during the implementation of social policy credit. Through inspections, it was noted that local Party committees and authorities have grasped and fully implemented the policies and preferential credit programs in the area; The organizations involved in capital management strictly adhere to the procedures and regulations for secured lending.
According to assessments, despite the achievements, credit quality is still affected by many factors and therefore remains unsustainable, with a high rate of overdue and non-performing loans. The plan is that by 2025, local budget funds entrusted to the Social Policy Bank will reach 6-8% of the total loan capital in the area, equivalent to approximately 220-280 billion VND, but currently only 129.6 billion VND has been entrusted.
To fully and promptly implement the policies and guidelines on preferential credit from now until the end of the year, the provincial branch of the Social Policy Bank will focus on accelerating the disbursement of funds to eligible beneficiaries according to the assigned growth targets, linking credit growth with improving credit quality. It will also promote solutions to mobilize capital from organizations and individuals; coordinate with local authorities and entrusted socio -political organizations to strengthen propaganda and mobilization of borrowers regarding their rights and responsibilities when borrowing, linking this with the transfer of science and technology to help borrowers invest in rational production and business development, increase income, and improve their living standards.
Hong Lam
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