Effective policy credit for sustainable poverty reduction

Update: 23-05-2020 | 08:35:29

Five years (2015-2020) is not a long time period but thanks to the good implementation of Directive No. 40 of the Party Central Secretariat, thousands of poor households in the province have had access to credit program of Social Policy Bank. As a result, the poor people stabilized their lives, got jobs, increased incomes, and eliminated poverty.

Social Policy Bank - Binh Duong branch creates good conditions for the policy fund to meet the credit demand of poor households and policy beneficiaries.

Good results

Since 2016, the system of Social Policy Bank has implemented 9 credit policy programs at many localities. Most programs are appreciated by people, such as the program for poor households. Through political social organizations at grassroots, poor households have easy access to preferential loans to invest in production, self-employment to create stable income, help themselves to escape poverty sustainably.

Tran Thi Kieu, an example of poor elimination in 2017 of Phu Loi Ward got a preferential loans from Social Policy Bank. She received preferential loans many times, she invested in an machine to make incense, then her income gradually improved. She said happily: "Thanks to the care of the Party, government, I have solved my hardest life problem, and eliminated the poverty sustainably".

Vo Van Duc, Director of provincial Social Policy Bank, said the bank actively developed plans and implemented in a timely manner, in accordance with local situation to ensure that the beneficiaries are entitled to preferential loans, ensure the right beneficiaries, strictly compliance with regulations. With the participation of the entire political system, policy credit activities have brought clear results.

Over five years, the policy credit program has helped more than 10,000 poor, near-poor households to get loans for business production, improving income; create new jobs for nearly 54,000 workers; reduce the unemployment rate, develop the professions, give loans to 3,913 disadvantaged students for learning, contributing to create a human resource for the country; construct nearly 80,000 clean water works, sanitation works to improve living standards of the population and new rural construction; 156 low-income customers were granted loans to buy social housing, new house...

According to Mr. Duc, every year, provincial Social Policy Bank actively cooperates with local authorities, political organizations to implement solutions to strengthen and improve credit quality; periodically examine and review the operational capacity of savings groups and trustee organizations, and perform comprehensive, thematic, sudden inspections to timely correct limitations, thereby to ensure the implementation of credit policies in accordance with regulations, guarantee the safety of the State's properties and beneficiary's rights. By the end of March 2020, the amount of overdue debts was over VND4.9 billion, accounting for 0.17% of total loan.

Credit expansion

The implementation of preferential credit policies has brought important results in socio-economic development of the province. Provincial Social Policy Bank has also gradually overcome the limitations for credit policies to be increasingly effective. However, a few levels have not properly cared for risk management, borrower management, have had no specific measures to improve credit quality, especially measures to tackle households that have not paid off the bank loan but moved away from their residence.

To continue improving the effectiveness of credit policies to help people develop production and escape poverty more sustainably, provincial Social Policy Bank continues to carry out many tasks. The bank advised provincial Party, People's Committee to direct levels, branches and unions to implement well Directive No. 40 of the Party Central Secretariat and Decision No. 401 of the Prime Minister on strengthening the Party's leadership in social policy credit. This is a central, throughout task to fulfil the national goals on poverty reduction and new rural construction.

Besides, provincial Social Policy Bank advised provincial leaders and localities to create the necessary conditions for activities of Social Policy Bank, helping borrowers to use loans efficiently, improve their lives. Provincial Social Policy Bank also suggested the Government, Vietnam Social Policy Bank would raise loan levels and loan deadlines to households newly escaping from poverty up to 10 years (currently is 5 years); expand loan borrower groups of clean water and environmental sanitation programs; provide loans to VND400 billion for employment creation to better meet the borrowing need of poor households and other policy people in the province.

As at the end of March 2020, total loan of policy credit programs in the province reached nearly VND2,942 billion, up 163% over the end of 2015. Average annual credit growth rate is 32.6% with more than 71,000 customers, in which are primarily from credit programs for poor household, near-poor, newly escape from poverty, clean water and sanitation, small and medium-sized enterprises... The credit programs comprehend a humanitarian meaning in economic, political and social fields, the cohesion between the economy and society in the poverty reduction, social security guarantee. In addition, credit growth, credit quality is an advanced measure of social policy.

Reported by Thanh Hong - Translated by Ngoc Huynh

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Effective policy credit for sustainable poverty reduction

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