Nha Trang: Efforts to reduce overdue debts of policy credit

Monday, 31/05/2021, 22:34 [GMT+7]

Nha Trang: Efforts to reduce overdue debts of policy credit

To reduce overdue debt of policy credit in Nha Trang, the Bank for Social Policies (VBSP) in Khanh Hoa Province has coordinated with associations, organizations and localities to implement many solutions. 
 
High overdue debts
 
In the first 4 months of the year, the provincial VBSP focused on disbursing policy credit funds, promptly meeting the borrowing needs in Nha Trang. Accordingly, the provincial VBSP disbursed to 1,836 customers with more than VND 71.4 billion totally. In which, there were 236 poor households, near-poor households, and newly escaped poverty households; 998 borrowers for renovation and new construction of clean water and environmental sanitation projects; 581 customers lending for job creation; 5 customers borrowing capital for social housing and 2 customers borrowed capital to pay wages for employees to stop working. Total credit balance till April 30 was nearly 526.3 billion VND, an increase of more than 23.6 billion VND compared to the beginning of the year, fulfilling 43.24% of the year plan.
 
By the end of April, overdue debts in Nha Trang were more than 3.3 billion VND, accounting for 0.63% of the total outstanding loans; the rate of overdue debts was much higher than the general rate of the whole province. According to the provincial VBSP leader, over the past time, the bank has extended debts for difficult cases.
 
 
Staff of VBSP doing transactions in Vinh Thanh commune. (Photo taken before March 16, 2021)
Staff of VBSP doing transactions in Vinh Thanh commune. (Photo taken before March 16, 2021)
 
To check and review borrowers
 
According to Nguyen Van Cuong - Deputy Director of the provincial VBSP, in order to reduce overdue debts and limit the arising of new overdue debts, the board of representatives has directed members to actively implement many tasks and solutions. In the second quarter, the provincial VBSP will continue to coordinate with the People's Committees of communes, wards, associations and organizations to check and compare the debts of savings and loan groups. At the same time, the bank coordinated to inspect and review 100% of borrowers leaving the locality, handling risky debts for borrowers that could not be recovered in the second phase of 2021 according to Decision No. 08 dated March 11, 2021 of the Prime Minister (effective from May 19, 2021). 
 
The People's Committees of communes and wards have also strictly collected due debts, made plans to recover overdue debts, concentrated on consolidating and improving the quality of entrustment activities, the quality of savings and loan groups. Entrusted associations and organizations have directed local associations and unions to develop plans to recover overdue debts and improve credit quality in the locality; reviewed and analyzed overdue debts, frozen debts, upcoming debts and inactive loans for 3 months to report to Party Committees and People's Committees of communes and wards; coordinated with VBSP to find solutions to recover each loan.
 
Mai Hoang
 
Translated by T.T