Efficiency of loan capital from Social Policy Bank

Update: 29-08-2019 | 11:30:13

Over 5 implementation years of Directive No. 40-CT/TW dated22 Nov 2014 of the Party Central Committee's Secretariat on strengthening the Party's leadership in social policy credit, the efficiency of social policy loans in Binh Duong has been proved to be a right decision, suitable for the people...

To disseminate Directive No. 40-CT/TW to all people

Vo Van Duc, Director of Binh Duong Social Policy Bank, said that immediately after the Secretariat issued Directive No. 40-CT/TW, Provincial Party Standing Committee direct the dissemination of Directive No. 40-CT/TW to all cadres and party members of provincial Party Committee. Provincial Party Committee issued a letter to direct local political system to implement Directive No. 40-CT/TW, and at the same time directed Party Committee of Provincial People's Committee to issue an implementation plan for Directive No. 40-CT/TW; resolutions directing annual political tasks also have content of the implementation of this directive.

Provincial Party Propagation and Education Committee collaborated with Department of Information and Communications, Binh Duong Newspaper, Binh Duong Radio and Television Station to enhance dissemination on the role of social policy credit in poverty reduction, job creation, and ensuring social security; rights and responsibilities of policy beneficiaries in implementing preferential credit policies.

Customers apply for loan at Binh Duong Social Policy Bank

Thereafter, Party committees and authorities at all levels agreed on the role and position of social policy credit in the implementation of national target programs on sustainable poverty reduction, job creation, new rural construction, ensuring social security of localities. Each locality always pays attention to directing, supporting, and creating favorable conditions for social policy credit activities. Specifically, at the local level, Chairmen of communal People's Committees were assigned to the Representative Board of district-level Social Policy Bank; pay attention to allocating funds from local budgets entrusted to local Social Policy Banks to supplement poor households and other policy beneficiaries with lending resources.

Some outstanding results

In 2014 (before the issuance of Directive 40-CT/TW), total outstanding loans reached VND 1,050,198 million (average outstanding loans VND 13 million/household), local entrusted capital reached only VND 63,925 million, overdue debt accounted for 0.35% with 10 loan programs. Since the implementation of Directive No. 40-CT/TW, Representative Board at all levels have well implemented operational regulations and resolutions of their levels and superiors. As a result, resource of social policy credit increased 1.5 times after the issuance of Directive No. 40-CT/TW; actively contributed to poverty reduction, job creation, human resource development, preventing and removing black credit, ensuring social security, and new rural construction.

As of 30 Jun 2019, the total outstanding loans reached VND 2,416,910 million, an increase of VND 1,366,712 million (1.3 times) compared to 2014, with 68,885 customers taking loans. The policy credit capital was allocated to 100% quarters and hamlets in the province, creating favorable conditions for the poor and other policy beneficiaries to easily access this fund. Along with the credit growth, the quality of social policy credit was also constantly raised, the overdue debt ratio decreased from 0.35% (at the end of 2014) to 0.18% (June 2019).

From social policy credit activities in the last 5 years, Binh Duong Social Policy Bank provided financial support to more than 119,000 poor households and other policy beneficiaries, with a total loan amount of VND 3,288 billion, contributing to helping more than 10,000 households surpass the poverty line to better their lives; more than 5,000 pupils and students have better studying conditions; more than 39,000 employees are maintained and received new jobs; more than 94,000 newly constructed and repaired water and environmental works up to national standards; disbursing loans to 103 households to buy, rent social houses, build or repair houses; granting loans to 32 small and medium enterprises; The social policy credit partly help 49 communes meet the new rural construction standard.

The effectiveness and efficiency of social policy credit has confirmed that the Secretariat’s Directive No. 40-CT/TW has been a right and popular decision, an important guideline in social policy credit implementation, profoundly changed the perceptions and actions of Party committees, authorities, and socio-political organizations in the implementation of social policy credit.

Reported by T. Vy – Translated by Ngoc Huynh

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Efficiency of loan capital from Social Policy Bank

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