1.62 million needy households received VBSP loans in first nine months

VBSP's policy credit has bettered the lives of students, needy households, and entrepreneurs alike

The bank’s policy credit has played an active role in supporting firms’ production and business activities, providing jobs to more than 162,000 labourers, 4,800 of whom went to work abroad under term-contracts.

Similarly, over 12,000 students in difficult living conditions were given loans to support their studies. More than one million clean water and sanitation facilities in rural areas were built using bank loans. The bank’s policy credit also contributed to building more than 12,000 houses to help needy households stabilise their lives, and building over 3,000 units of social housing in light of government Decree No.100/2015/ND-CP, among others.

Policy credit has contributed a great deal to ensuring the effective implementation of the Party and the state’s guidance, policies, and targets on sustainable poverty reduction, building up a new-style countryside, focusing on human resources development, social welfare assurance, political stability, and socio-economic development.

As of September 30, 2019, VBSP posted VND200.813 trillion ($8.73 billion) in total cumulative outstanding loan balance, up VND13.021 trillion ($566.13 million) compared to the end of 2018, a 6.9 per cent jump, with more than 6.5 million needy households and other policy beneficiaries still holding loans from the bank.

Credit quality has been constantly improving, with overdue debts only accounting for about 0.74 per cent of total outstanding loans.

In addition, VBSP has been actively working with state management agencies and diverse local governments to effectively carry out Directive No.40-CT/TW dated November 22, 2014 of the Secretariat and Decision No.401/QD-TTg dated March 14, 2016 of the prime minister on strengthening Party leadership on policy credit.

Since implementing Directive 40, locally-controlled capital sources allocated to VBSP for loan provisioning have increased by VND10.810 trillion ($470 million). In the first nine months of this year, it was added VND2.809 trillion ($122.13 million) compared to the end of 2018, bringing total cumulative authorised capital sources to VND14.618 trillion ($635.57 million).

Leveraging the upbeat results attained in the first nine months of this year, VBSP is set to effectively conduct several major tasks in the rest of the year, including taking the initiative in mobilising capital to meet disbursement requirements for its diverse credit programmes; continuing issuing bonds with government guarantee under the approved limits; and ensuring timely capital disbursements to meet abundant customer requirements.