Hanoi entrusts VND 650 billion through VBSP to help the poor overcome difficulties amid COVID-19

(VBSP News) The VBSP branch in Hanoi will be  entrusted funds with VND 650 billion  (~ 28.2 million USD) in 2020 (phase 1) by Hanoi authorities to meet about 65 percent loan demand for the poor and other policy beneficiaries to recover production and overcome damages caused by the Covid-19 pandemic.

Hanoi will entrust VND 650 billion to the poor to overcome difficulties

(Photos taken before April 1, 2020)

On March 30, Hanoi People's Committee submitted a written request to the City Council on the additional entrusted capital in 2020 for the above purposes. Accordingly, Hanoi will add entrusted capital from the city budget to the VBSP Hanoi in 2020 (phase 1) of VND 650 billion to meet about 65% of the lending needs for the poor and other policy beneficiaries in the city in order to maintain production and overcome damages caused by the Covid-19 pandemic. Thereby, Hanoi ensures the goal of poverty reduction, job creation and social security.

The municipal authorities asked the VBSP branch to coordinate closely with local governments, mass organizations to promptly disburse to right beneficiaries.

Priority will be given to households enjoying debt payment rescheduling and extension, poor and near-poor households, cooperatives and small and medium-sized enterprises, mostly those working in agriculture, food supply, health care and necessities.

VBSP also support sectors hardest affected by the Covid-19 pandemic such as agriculture, food, health care and necessities.

The VBSP BOD representatives at district level often instruct mass organizations, communal authorities, savings and credit groups at grassroots level to review and assess for the right beneficiaries and avoid exploitation of priority policies. Besides, the quality and effectiveness of credit procedures are improved to ensure debt repayment in due time so as not to generate bad debts.

The VBSP branch in coordination with local authorities and mass organization has proactively reviewed and assessed the borrowers suffering from losses. The eligible customers are instructed to submit loan application files for approval.

According to a report of VBSP branch, through initial review and survey, the disease is affecting about VND 1,000 billion for 25,000 customers (eligible for loans) and the needs for new loans to recover in 2020 is VND 412 billion. The most affected industries are animal husbandry, small businesses and services, health care and transportation with a total outstanding loan of VND 2,384 billion, accounting for 28% of the total.

Source: vbsp.org.vn