Participation of local authorities in VBSP's activities

(VBSP News) In order for the efficient use of financial resources mobilized by the State for the poor and other last-mile populations, the Government has clearly defined the responsibilities of state management agencies at the central and local levels in the use of policy credit capital.

According to Article 27 of Decree 78/2002/ND-CP dated October 4, 2002 of the Government on prescribing the responsibilities of the Chairman of the Commune People's Committee for credit to the poor and other last-mile populations, as follows:

• Arranging the list of poor households according to the poverty line announced by the Ministry of Labor, War Invalids and Social Affairs.
• Directing the establishment and approval of the operation of the Savings and Credit Groups.
• Organizing and directing the Commune-level Poverty Alleviation Program Steering Committee to coordinate with mass organizations in supervising the voting poor households and other last-mile populations to get loans in order to ensure democracy and publicity; confirming the list of poor households to get loans; coordinating with the lending institutions and the Savings and Credit Groups to check the use of loans and debt recovery.
• Commenting on the borrower's proposal for debt extension and risk settlement.
• Coordinating with functional departments at district level, mass organizations, sponsoring organizations and lending organizations to open instruction classes on cultivation, animal husbandry, processing, knowledge on the market, borrowing regulations and debt repayment of VBSP.

Deputy Chairperson of Commune People’s Committee acts as the member of BOD representative unit and join policy credit management at locality

According to the above provisions, the Chairman of the Commune People's Committee is the person who knows best in organizing the implementation of the credit plan targets of VBSP. The Chairman is also the person with authority to make the list of poor households and other last-mile populations; identify borrowers and confirm on the loan request list of the Savings and Credit Groups. Since then, the Chairman has an important role in researching, proposing advices to supplement and amend credit policy. Based on the local socio-economic situation, the needs of the people and the reality of implementing credit programs of VBSP in the area, the Chairman proactively researches and proposes advices with the competent authorities on supplementing and amending the inadequacies of the credit policy to ensure that it is consistent with the local socio-economic development program and suitable to the working and production capacity of the people in the area.

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