Social Policy Bank sums up its 5-year operation

    Poverty Alleviation Program was launched in 1993 by creating Poverty Alleviation Fund to help poor people to do business or produce goods in order to improve their income, get rid of poorness and accumulate capital. Social Policy Bank was established in 2003 to match the process of borrowing poverty-alleviation capital with the process of credit activity of bank operations (borrowing method and interest rate). The bank’s operations base on 2 sources of capital: local and central allocation. Through two period from 1999 to 2005 and two years of the third period from 2006 to 2010, it has lent money to the poor and other programs in the province. It has been highly appraised by executive committees and administrations of all levels. At first, it just lends money to poor families and helps them to find a job. Year by year, it has expanded its scales and customers. By 2007, it has 6 programs: poor family, job creation, poor student, clean water and environmental sanitation in rural area, foreign-country-labor-with-limited-time accredited people and poor families in poor zones.

    The total loan of preferential credit program that Dongnai Branch Social Policy Bank manages by the end of 2007 is 434.828 million VND. It is 364.598 million VND higher than that of 2003 (increasing 519.1%). This amount consists of 371.628 million VND from central balanced capital (making up of 85,5% and increasing 329.428 VND in comparison with the beginning of 2003) and 63.200 million VND from local capital (making up of 14,5% and increasing 35.170 million VND in comparison with the beginning of 2003). The capital lending to 83.337 families in five year is 541.654 million VND. The turnover of debt collection in five years is 210.275 million VND. The total amount of outstanding debt of 1.322 savings and loan borrowing teams and 67.314 families by the end of 2007 is 427.616 milion VND, 364.489 million VND higher than that of the beginning of 2003 (the growth is 577,4%). The growth rate of outstanding debt per year is 43,8%. In 2007, to carry the program to develop credit services of general manager of Vietnam Social Policy Bank, Dongnai branch Social Policy Bank has promoted its borrowing programs. In five year, it has lent money to 42.566 families and 1.322 savings and capital borrowing teams with the total amount of 330.005 million VND. The average amount of a family is 7,75 million. In 2007, that of a family is 9,98 million VND. It has loaned 56.198 million VND to 14.594 students. In 2007, it has loaned 30.298 million VND to 2.596 poor families in difficult zones to do business or produce goods.

Pham Van Tuan in Thong Nhat district borrows money to construct clean water system

    In five years from 2003 to 2007, all preferential credit programs for poor people and accredited people have been launched at all districts, towns and Bien Hoa city.  The operation of Social Policy Bank has been spread on many communes. This has created favorable conditions for its customers to borrow money and pay debt.

    Mr. Huynh Cong Nam, Manager of Dongnai Branch Social Policy Bank, unveils that in 2008 the bank keeps on implementing 7 programs of the Decree No.78/ND-CP and launches new program for poor minority. It will focus on developing credit programs for poor families and poor zones, indigent students, clean water and environmental sanitation in rural area in order to decrease poor families in the province to below 2%; enhancing credit activities; strengthening the operations of savings and loan borrowing team; trying to decrease overdue debt to below 4% in accordance with Banking Regulations.

(Reported by N.Thuong, Translated by Anh Tuyet)