Policy credit capital - a fulcrum for the poor

After 10 years of implementing Directive No. 40 dated November 22, 2014 of the Secretariat on strengthening the Party's leadership over social policy credit, policy credit capital in the province has been strengthened, cleared and brought closer to the people, becoming a solid fulcrum for the poor and policy beneficiaries.

According to the report of the Provincial Social Policy Bank, currently, the province is implementing 19 policy credit programs. The total loan turnover from the beginning of 2014 to June 30, 2024 reached more than 13,693 billion VND, with 356,713 poor households, near-poor households and other policy beneficiaries receiving loans. The total outstanding debt of policy credit programs is currently more than 4,407 billion VND, an increase of 2,722.6 billion VND compared to 2014, with 114,950 poor households and policy beneficiaries still having outstanding debt. Of which, outstanding policy credit for production and business to create livelihoods and jobs reached more than 2,867.6 billion VND, accounting for 65.06% of total outstanding debt. Outstanding policy credit for life and living reached more than VND 1,359.8 billion, accounting for 34.93% of total outstanding loans. In particular, in the period of 2020 - 2023, the provincial Bank of Social Policy has disbursed a number of programs to implement the economic recovery package after the Covid-19 pandemic such as lending to businesses to pay salaries for workers who have stopped working during the time affected by the Covid-19 pandemic; lending to students to buy computers and online learning equipment; lending to non-public preschools and primary schools, etc.

Ho Dac Thich - Director of the Provincial Social Policy Bank said that since the implementation of Directive No. 40, the Party Committee, People's Council, People's Committee at the provincial and district levels have paid attention to and arranged additional resources through the Bank of Social Policy at the same level to lend to poor households and other policy beneficiaries. Thanks to that, the capital source in the area has continuously grown, increasingly meeting the borrowing needs of poor households and other policy beneficiaries. As of June 30, 2024, the central capital transferred reached 3,139.6 billion VND, accounting for 71.08% of the total capital, an increase of 1,689.6 billion VND compared to 2014. The capital mobilized from organizations, individuals and received deposits from members of savings and loan groups reached nearly 642.3 billion VND, accounting for 14.54% of the total capital, an increase of more than 568.3 billion VND compared to 2014. The capital entrusted from the local budget reached more than 634.4 billion VND, an increase of more than 471.2 billion VND compared to 2014, accounting for 14.38% of the total capital.

Currently, 4 socio-political organizations including the Women's Union, the Farmers' Association, the Veterans' Association, and the Youth Union are coordinating with 2,535 savings and loan groups, of which 2,100 groups have no overdue debts. Socio-political organizations from the provincial to grassroots levels have actively promoted and mobilized the poor and other policy beneficiaries to boldly change their thinking and working methods, proactively borrow capital to invest in production, create jobs, and improve their lives; eliminate the mindset of waiting and relying on the State's support. The management and guidance on the use of loans, and urging timely debt and interest collection have contributed to improving the quality of entrusted activities, bringing capital management into order and efficiency.

According to the report of the provincial Bank of Social Policy, in 10 years of implementing Directive No. 40, policy credit capital has helped over 84,980 households overcome the poverty line; created jobs for more than 85,060 workers; built 541,288 clean water and environmental sanitation works, 404 houses for poor households; 19,478 households in difficult areas have been able to borrow capital for production and business, increase income, and gradually escape poverty; supported the construction of 889 social housing units. Policy credit capital has contributed to the implementation of the province's poverty reduction program, reducing the poverty rate from 9.68% in the 2016-2020 period to 3.86% in the 2022-2025 period.

Hoang Dung

Translated by T.T