Government bolsters loans for needy households and traders

09:59 | 06/03/2017 Economy

(VEN) - Preferential credit in 2017 through the Vietnam Bank for Social Policies (VBSP) will be higher by around VND5.1 trillion compared to the previous year, while the credit package for social housing with about VND1 trillion will be implemented as soon as the government gives the green light.  

VBSP Deputy General Director Nguyen Van Ly said that the bank’s credit growth was assigned by the prime minister to increase by 10 percent in 2016. To accomplish its growth target, the VBSP implemented several measures on capital development, such as opening up a new capital raising channel in bank branches. Savings at bank branches after three months of implementation reached VND352 billion.

The VBSP raised total capital of VND162.38 trillion by December 31, 2016, an increase of 10.9 percent compared to 2015. Of this sum, savings stood at VND5.436 trillion, a year-on-year increase of VND1.25 trillion. In addition, total outstanding loans of social policy credit programs reached VND157.372 trillion.

Despite the growth in loans, the rate of delinquency was very low, accounting for only 0.75 percent of total loans and dropping 0.03 percent compared to a year ago. Loan sales in 2016 reached VND55.15 trillion with more than 2,297 borrowing households. Beneficiaries of the programs are nearly-poor households, poor households and trading households.

With a credit growth target of eight percent this year assigned by the prime minister (equivalent to about VND11.3 trillion), the VBSP will strive to collect around VND45 trillion in debts in addition to earmarking other capital sources. The VBSP will also focus on raising capital in bank branches with a focus on areas with high-income households. Regarding remote areas, the VBSP will collect savings at home.

In addition to meeting household loan demand, the VBSP will promote the disbursal of social housing loans. Ly said that the bank is ready to provide social housing loans, and is waiting for a green light from the government. Total capital for the credit package for social housing this year stands at VND1 trillion. The VBSP has conducted research and collected suggestions, while issuing professional guidance to staff on social housing loans. In particular, the bank has organized training courses for staff to improve banking operations.

VBSP Deputy General Director Nguyen Van Ly:

The social housing program is considered the focus of social security in the coming years. The government will designate

capital sources for the social housing program.

Duy Minh