Nearly 6.4 million households become beneficiaries of policy credit

March 10, 2022 | 09:20
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Despite the surging outstanding loan balance of policy credit programmes, debt quality across the Vietnam Bank for Social Policies (VBSP) system continues to be stable, with overdue and frozen debt accounting for a mere 0.7 per cent of total outstanding loans.
Nearly 6.4 million households become beneficiaries of policy credit
Nguyen Thi Hong, VBSP chairwoman giving her concluding remarks at the bank's recent meeting

Nguyen Thi Hong, governor of the State Bank of Vietnam and chairwoman of VBSP’s board of management spoke at a meeting on March 4 to review VBSP’s operation over the last quarter of 2021.

As of the end of last year, total credit volume across its system reached just over $11 billion, an increase of around $990 million compared to the previous year. Total outstanding loan balance of policy credit programmes amounted to $10.8 billion, showing a 9.6 per cent jump of almost $947 million on-year.

Units in the VBSP system have helped customers affected by the pandemic to tackle their debt and stabilise their lives.

Within this, outstanding loan balance of credit programmes assigned by the prime minister reached $9.1 billion, up 8 per cent ($675 million) compared to the year before. This met the set target, with nearly 6.4 million needy households and other policy beneficiaries taking out loans.

VBSP also introduced lending programmes to support employers facing difficulties due to the pandemic. It made around $100 million available to nearly 2,500 employers, allowing them to make payments to roughly 600,000 staff members.

In 2021, the lending volume amounted to $3.48 billion, an increase of $190.6 million compared to 2020, with over 2 million people receiving loans.

Delivering her concluding remarks at the meeting, chairwoman Hong acknowledged the efforts of the board of management and VBSP staff, who have been instrumental in the whole system’s strong performance over the past year.

After the government issued Resolution No.11/NQ-CP on socioeconomic rebound and development in February, and implemented the National Assembly's Resolution No.43 on fiscal and monetary policy to support the programme, VBSP quickly presented an action plan to introduce preferential lending policies and provide interest rate support as regulated in Resolution No.11.

VBSP’s general director asked the whole system to mobilise capital sources, collect due debts, and promote lending to meet the needs of beneficiaries and the targets set by the prime minister.

The bank is coordinating with relevant ministries and units throughout the system to ensure the effective implementation of preferential credit packages over the coming years. It will continue with lending programmes to support payments for job stoppages, and the rebound efforts of individuals and businesses as directed by the government.

By Hong Thuy

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