Central Bank of Cuba chief visits Hanoi to work with VBSP

Juanna Lilia Delgado Portal, president of the Central Bank of Cuba

The delegation was accompanied by representatives from several ministries and sectors, presidents of Cuban commercial banks, representatives from the Cuban Embassy in Vietnam, and representatives from the State Bank of Vietnam.

During the meeting, Duong Quyet Thang, general director of VBSP, warmly welcomed and extended his best wishes to the high-ranking delegation, followed by an introduction of the key highlights of VBSP's formation, development, and activities.

Starting with the establishment of the Poverty Reduction Loan Fund in 1995, followed by the creation of the Bank for the Poor in the same year, and the official establishment of VBSP in 2002, VBSP has consistently strived to achieve its goals, building an effective operational system from central to local levels.

Duong Quyet Thang, general director of VBSP

As a specialised banking model and a tool to implement preferential credit policies for over 22 years, VBSP has overcome many challenges, enhancing its role as an important economic lever of the state in sustainable poverty reduction efforts. VBSP has demonstrated the development and effectiveness of the special policy credit channel in Vietnam. This is a policy-based credit system with the involvement of the entire political system, from central to local levels, which has provided vulnerable groups with opportunities to develop economically, improve their quality of life, respond to external risks, and form saving habits for the future.

As of November 19, VBSP's total outstanding loans amounted to over VND361 trillion ($14 billion) with almost 7 million active customers over 20 credit programmes. VBSP has been regarded as having among the best credit quality in the banking system. The bank has received support and recognition from all levels, sectors and the public, being honoured with the title 'Labour Hero' during the renewal period. VBSP has also been praised by the World Bank and other international organisations.

Speaking at the working session, Juanna Lilia Delgado Portal said, "I greatly appreciate the operational model of VBSP and its contributions to ensuring social welfare so that no one is left behind. Hopefully, we can learn from each other's experiences as well research and develop a policy-based credit product suitable for Cuba."

Delgado Portal welcomed the initial relationship being established between VBSP and the Cuban People's Savings Bank (BPA),saying, "BPA has the largest branch network in Cuba with its focus on mobilising savings and providing tailored banking products to locals. BPA also manages several government schemes related to social policies. I hope to see VBSP and BPA cooperating in the near future."

At the end of the meeting, both sides agreed to research and strengthen cooperation in the development of policy-based credit, contributing to the development of solidarity and friendship between the two banking sectors and the enduring friendship between Vietnam and Cuba.

Vietnam Bank for Social Policies scales up support in aftermath of Typhoon Yagi Vietnam Bank for Social Policies (VBSP) has announced it will suspend interest payments for borrowers affected by Typhoon Yagi and the subsequent flooding until December 31.

Policy credit a boon to Yen Bai residents in the wake of Typhoon Yagi Yen Bai province suffered some of the most significant damage from Typhoon Yagi in September, with heavy rainfall and floods. In response, Vietnam Bank for Social Policies (VBSP) has stepped up the pace of policy credit allocation to affected areas in the locality.

Improving the effectiveness of social policy credit Following a decade of implementation, social policy credit is expected to enter a new phase of development to achieve higher efficiency for the sake of society and the community.