Bank for Social Policies: Ensuring capital supply amid the complicated developments of the Covid-19 pandemic

– Facing the complicated development of the Covid-19 epidemic, the provincial branch of Bank for Social Policies (BSP) has instructed customers who use face to face services in strict compliance with epidemic prevention and control measures. At the same time, actions are taken to ensure the bank’s services safe and smooth, and to promptly meet the capital needs of poor households and other policy beneficiaries.

BSP with the responsibility of bringing policy capital to rural people, bank services including loan disbursement, debt collection and interest collection is carried out in communes, wards and townships. Facing the complicated situation of the Covid-19 epidemic, in order to ensure the supply of capital for production development to the people, BSP has proactively developed plans to handle the situation timely and effectively.

Mr. Nguyen Xuan Phong, Deputy Director of BSP in Huu Lung district said: Regarding the case of Minh Hoa’s commune which is being isolated due to the Covid-19 epidemic, the bank has suspended transactions and is expected to make compensating transactions at the end of May 2021. In other communes, in order to ensure the epidemic prevention and control and provide capital for production activities, before organizing transactions in the commune, the bank provide heads of savings and loan groups, socio-political organizations receiving entrustment with information of specific transaction timelines. Accordingly, the bank organizes disbursement and debt recovery in shifts so that customers can make arrangements to make transactions at the bank smoothly ensuring social distancing and avoid large gatherings.

Banking transaction activities in Khanh Xuan commune, Loc Binh district

Up to now, the total outstanding policy credit in Huu Lung district has reached over 404 billion VND with 10,515 loans. In particular, in May 2021 alone, the transaction office has disbursed more than 5.5 billion VND and lent to 131 households.

Similarly, in Bac Son district, the district bank has specific solutions to ensure normal commune transaction activities. It is recorded that in May bank transactions were suspended in 7 communes due to the Covid-19 epidemic. To ensure the capital supply to develop production in these communes, the bank has developed a specific compensating transaction schedule immediately. At the same time, the bank has coordinated with communes to collect debts and collect interest effectively. At present, the interest collection rate of the bank reaches 99%.

Mr. Hoang Quang Phiet, Chairman of the People’s Committee of Chien Thang Commune, Bac Son District said: The Commune People’s Committee has instructed the organizations and associations receiving entrustment and savings and loan groups to collect debts and interests on time; cooperated with bank to organize safe and effective transactions. To ensure capital for production, in May the Commune People’s Committee coordinated with the District Social Policy Bank to disburse 980 million VND to 22 households. Currently the total outstanding loan of the commune is 16 billion dong with 338 customers.

Thanks to the effective solutions, the disbursement of capital in districts and cities even in the peak period of Covid-19 pandemic prevention and control achieved expected results.

Banking transaction activities in Dong Tien commune, Huu Lung district

Mr. Pham Manh Ha, Deputy Director of the Provincial Bank for Social Policy said: Following the direction and guidance of the Government, Ministry of Health, Provincial People’s Committee and Vietnam Bank for Social Policy, the Lang Son branch has thoroughly instructed employees, especially those who directly work with customers must follow and apply pandemic prevention and control measures to maintain commune transaction points and promptly disburse capital to the poor and other policy beneficiaries. In communes where transactions are suspended, it is important for the bank offices to actively develop plans for compensating transactions. In addition, in order to meet customers’ borrowing needs, the branch has now received an additional 30 billion VND from Vietnam Bank for Social Policies to organize loans for production and business program in disadvantaged areas.

Along with practical measures to minimize the risk of Covid-19 transmission, VBSP will continue to implement the policy of debt extension and debt structure for customers affected by the Covid-19 pandemic. At the same time, the bank is committed to creating favorable conditions for the poor and other policy beneficiaries to continue to receive new loans for reinvestment in production development, stabilizing their lives, and stable poverty alleviation and reduction.

Up to now it is recorded that the total outstanding balance of preferential credit programs at the provincial VBSP more than 3,200 billion VND; the loan turnover from the beginning of 2021 is 511.3 billion VND with 11,351 loans of which, recorded loan sales in May alone was 82.4 billion VND, lending to more than 1,800 households.