Businesses supported with loans to pay salaries and restore production

(VBSP News) Many credit contracts to help businesses pay salaries for workers during work suspensions and for the recovery of production in general have been signed only a short time after the Prime Minister signed and promulgated Decision No.23/2021/QD-TTg on the implementation of a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic.

A disbursement session for business loans from the branch of VBSP in the northern province of Hoa Binh

The number of businesses accessing the loan package of VND7.5 trillion (nearly US$326 million) is increasing rapidly, contributing to supporting employers and employees to overcome the difficulties caused by the COVID-19 epidemic, maintaining production and ensuring adequate living conditions.

Immediately after the State Bank of Vietnam issued a Circular to implement the refinancing package, on the afternoon of July 21, the branch of VBSP in the northern mountainous province of Lang Son signed a support credit contract with the Mai Linh Lang Son Technology Transport Co., Ltd.

Accordingly, the company was given VND92.6 million to pay salaries for nine employees with an interest rate of 0%, the loan term being 12 months, and no collateral required.

Mai Linh Lang Son Technology Transport Co., Ltd. Director Nong Thi Van said that the recent outbreak of the COVID-19 epidemic has severely affected the company's operations. Many employees of the company have lost their incomes and jobs due to the reduced travel demand of the people.

Therefore, the timely attention and support of the VBSP in Lang Son province has created favorable conditions for the company to access the preferential loan package, she said, adding it will also help businesses in restoring production over the last months of the year, while at the same time ensuring income sand stabilizing the living conditions of workers.

Meanwhile, Chu Phuong Khanh, an employee from the Pride Trade and Tourism Company in Lang Son said this capital not only helps the company reduce pressure to cover operating costs, contributing to maintaining its operations, restoring production and business, but also supports workers to overcome this difficult period of time.

As of July 29, VBSP has approved loans to 125 employers of more than VND99 billion to pay the salaries of more than 29,000 employees in accordance with Decision No. 23/2021/QD-TTg of the Prime Minister. The total amount disbursed by the VBSP as of July 30 was VND99 billion.

According to Deputy Director of the VBSP in Lang Son province Pham Manh Ha, right after Resolution No.68 and Decision No.23 were issued, the branch proposed the Lang Son Provincial People’s Committee issue documents directing the relevant departments, agencies, and the provincial Fatherland Front to coordinate with socio-political organizations to disseminate information and implement the relevant policies.

Along with Lang Son province, the implementation of the credit policy to help businesses to pay salaries for workers has also spread across the country. Up to now, all 63 branches of the VBSP in 63 provinces and cities together with all levels, branches and localities have received dossiers, having quickly reviewed and appraised these to sign credit contracts.

Vice Chairman of the Quy Nhon City People’s Committee Nguyen Phuong Nam said the branch of the VBSP in Binh Dinh province has announced the scheme to transaction points in all communes, wards and towns in the province.

The branch of VBSP in Binh Dinh province has received applications for loans of more than VND8.2 billion from 19 enterprises to pay the salaries of 982 employees. The branch has also signed credit contracts with nine businesses and educational institutions to borrow to pay the salaries of 395 employees with a total loan of over VND2.6 billion.

It can be seen that experiences drawn from actual implementation will help VBSP branches in provinces and cities implement more quickly and effectively Resolution 68/NQ-CP of the Government and Decision 23/2021/QD-TTg of the Prime Minister.

However, the implementation of the policy requires not only the efforts of the bank, but also the participation of the whole political system and the relevant agencies to identify the right borrowers, timely address any problems arising as well as closely monitor and ensure publicity and transparency in the implementation process.

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