Policy credit helps people surmount pandemic challenges
(VBSP News) Like other business entities and organizations, the Bac Giang branch of Vietnam Bank for Social Policies has been operating at full throttle after the social distancing, bringing policy credit to each commune and hamlet, helping local residents resume production and stabilize life.
Ensuring safe transactions at VBSP Bac Giang’s service units at grassroots level
Bac Giang is the first locality in Vietnam eyeing strong resurgence from the fourth wave of the COVID-19 pandemic. The pandemic has taken place across local industrial zones (IZs) with a high concentration of workers, causing severe losses.
Fruit orchards bring high yields to the family of Giap Van Tien in Luc Ngan district, who took up a VND50 million ($2,170) loan from VBSP Bac Giang
One eminent example of the efforts to eradicate difficulties is the family of Ban Thi Hue in Dong Dinh hamlet, Binh Son commune, Luc Nam district who belongs to the Dao ethnic minority.
Policy credit always a central task
Credit signing ceremony to lend employers affected by COVID-19 at VBSP Bac Giang
The ample capital sources have come from concerted efforts by local management authorities at all levels who have always taken policy credit activities as their central task, from there giving favorable conditions helping VBSP Bac Giang to build up strong capital sources serving people’s needs.
After seven years of implementing Directive No.40/CT-TW of the Secretariat on strengthening the Party’s leadership towards policy credit, the bank has received VND168.5 billion ($7.33 million) worth of authorized capital from the People’s Committees at diverse levels to lend to needy people and other policy beneficiaries in the province.
Through the system of 3,116 saving and lending groups at grassroots level and a network of 209 transaction points the bank’s staff have effectively tackled the capital demands of local people and businesses.
As of now, 64 businesses were given more than VND200 billion ($8.7 million) preferential credit at zero per cent interest to pay wages for nearly 59,000 laborers.
VBSP Bac Giang also takes the lead in the VBSP system with the largest outstanding loan balance volume earmarked to support firms in payment for workers with work suspension and rebounding production.
A highlight in the operation of VBSP Bac Giang is that the bank staff are well-trained with high dedication and sound experience in their field who could quickly embrace new procedures and policy credit provision methods to better serve the people.
Through VBSP Bac Giang’s operation, policy credit has become an effective tool helping Bac Giang to successfully implement the national target program on poverty reduction, ensuring social well-being in a sustainable manner, surmounting the difficulties caused by nature and effectively containing the pandemic.
During the period 2016-2020, Bac Giang reported a stable drop in the number of poor households averaging 2.23 per cent annually. The rate even reached 4-5 per cent in several communes with particularly difficult conditions for development.
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