The Bank for Social Policies (VBSP) has just been supplemented VND25 billion by the Central Bank for job creation. Localities are disbursing this new capital to support local people.
The Bank for Social Policies (VBSP) has just been supplemented VND25 billion by the Central Bank for job creation. Localities are disbursing this new capital to support local people.
Loans used effectively
Tran Thi Thuy Van (group 1 Vinh Diem, Ngoc Hiep ward, Nha Trang city) had 200 coconut trees in her garden. After many years, the coconut trees got degraded. Then, she borrowed VND50 million from the job creation fund of VBSP to renovate the coconut trees and plant new coconut trees. Now, her coconut garden gives her family VND5 to 8 million a month. Nguyen Van Diep in Khanh Vinh Township also borrowed VND 100million from the VBSP to plant 370 orange trees and 200 grapefruit trees in Thac Trau area in Khanh Nam Commune, Khanh Vinh District. In 2018, grapefruit and orange trees began to be harvested.
Credit for job creation is one of the important channels to support people in earning, reducing poverty sustainably and creating new jobs. By November 15, total creadit balance for job creation was over VND 299.6 billion with 9,142 borrowers. The capital of the program has brought a very positive effect; credit is safe because of the low rate of bad debts and overdue debts. However, in recent years, the capital source for job creation program has not met the demand of loans of local people. Localities as well as VBSP often propose the Central and the provincial budget to supplement loans for job creation. At the same time, it is recommended to increase the lending level for this program.
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Loans to be raised
On September 23, 2019, the Government issued Decree 74 amending and supplementing a number of articles of Decree No. 61 dated July 9, 2015 to provide policies on job creation support and the National Fund for Employment, which raises the maximum loan limit and the loan term for the job-lending program. This policy, effective from November 8, 2019, is good news for local people. Bui Nhat Quang - Deputy Director of VBSP Khanh Hoa said that Decree 74 has some noticeable new points that the loan level is raised to a maximum of VND 100 million for employees; for production and business establishments, the maximum loan amount is VND 2 billion for each project and not exceeding VND100 million for each employee. The loan term is extended to a maximum of 120 months.
On November 18, the VBSP assigned VND 25 billion to its branch in Khanh Hoa Province to lend for job creation, maintenance and expansion. The capital has been allocated to localities in the province and it is expected that disbursement will be completed on December 10.
The addition of capital, increasing the limit, the loan term has increased both access opportunities and helped promote the efficiency of loans of local people.
The addition of capital and the increase of the limit and the loan term have raised access opportunities and promoted the efficiency of loans for the local people.
Nam Du
Translated by T.T
