The Prime Minister agreed to add several causes to handle non-performing loans at VBSP

(VBSP News) The Prime Minister — Mr. Nguyen Xuan Phuc — chaired the Standing meeting of the Government of modifying and supplementing Decision No.50/2010/QĐ-TTg on Regulation on handling non-performing loans in the Vietnam Bank for Social Policies.

Prime Minister Nguyen Xuan Phuc was speaking at the meeting

According to reports of the Ministries and VBSP, the mechanism of handling non-performing loans, regulated in Decision No. 50 in 2010, has solved problems caused by objective reasons. From 2002 till now, the total debt to be handled was VND 4.647 billion for 804.000 loans.

Nevertheless, there are several risks that were not mentioned in Decision No. 50 during the deployment time. Therefore, it is necessary to research, implement. Some objective causes should add includes: political, socio-economic upheaval; the COVID-19 pandemic affected labour exports; business receiving labour went bankrupt or dissolved; business unilaterally terminates the labour contracts because of objective reasons that are not caused by their labour themselves, that leads labours to return before the visa experiment; customers borrowing loans or customers' family members have a fatal illness; customers who don’t have the ability to work from 81%; other family members of customers are considered for debt settlement.

According to the Ministry of Finance, added articles have been ensured, as well as consistent with real life. Hence supporting customers to stable their life and pay loans to VBSP, besides making the inspection and examination of VBSP easier.

The meeting of the Permanent Government on 03 March

Prime Minister Nguyen Xuan Phuc stated that poverty eradication is highly focused on by the Party and the Government. Poverty reduction is considered as a requirement for sustainable development, demonstrating the socialist orientation of the Party and the Government. Besides developing the infrastructure, improving people's income, poverty reduction plays an important role as well. The reduction of poor people from 30% to 2.7% indicated the huge success of the country.

“There are lots of solutions to reduce poverty, including the rise of people with the support of the Government and capital from VBSP” - stated by the Prime Minister.

At the meeting, the Prime Minister glorified leaders, staffs of VBSP who have put their efforts on poverty reduction, coordinating with socio-political organizations (the Women's Union, VietNam Farmer Union, Veterans Affairs, Ho Chi Minh Communist Youth Union). Based on that spirit, the Prime Minister instructed the VBSP to improve the quality and efficiency of the operations, especially paying attention to the effects caused by COVID-19 on people's lives, meanwhile proposing in-time solutions.

The modification of Decision No. 50 in 2010 is necessary, declared by the Prime Minister. The Standing Government agreed on the need to amend this regulation. The Standing Government agreed to add on objective reasons leading to risks, such as the customers can only change their business model according to competent authorities; socio-political upheaval; pandemics; family members having a fatal illness, etc.

Considering that the revision of the regulation on dealing with non-performing loans will create conditions for poverty reduction and for VBSP to operate in the right direction, the Prime Minister assigned the administrator to receive comments and submit them to the Prime Minister for consideration and promulgation. The Prime Minister noted that COVID-19 made many businesses and people difficult. The Ministry of Justice reviews legal bases, ensures compliance with legal regulations, avoids creating loopholes to abuse policies.

Vbsp.org.vn