Deputy PM highlights role of cheap loans in poverty reduction

ABO/NDO - Deputy Prime Minister Vuong Dinh Hue has underlined the role of the Vietnam Bank for Social Policy (VBSP), which provides cheap loans to poor rural residents, as an important pillar of the national programme on sustainable poverty reduction.

The conference on the role of cheap credit in sustainable poverty reduction (Photo: VNA)

He noted that thanks to the bank, the rate of poor households was falling rapidly during the 2015-2018 period, helping to raise the people’s living standards.

Deputy PM Hue was speaking at a conference held on September 23 in Hanoi on the role of low-interest credit on sustainable poverty reduction.

According to the Deputy PM, the VBSP’s nine key lending programmes, such as loans for poor households, rural clean water and environment, student loans, and loans for disadvantaged areas and ethnic households, account for 98% of the bank’s outstanding loans.

He added that the credit policy for poor households is the most wide-ranging policy that meets the funding needs of poor people and has brought about substantial benefits.

At the conference, Deputy PM Hue also pointed out a number of issues that need to be dealt with in order to further enhance the effectiveness of loans from the VBSP.

He asked the parties concerned to consider raising the lending quotas and extending the lending duration for households that have just escaped from poverty.

The Deputy PM also suggested that the VBSP strive for an annual credit growth rate of at least 10% in 2020 and looking further forward into the 2021-2025 period.

According to VBSP General Director Duong Quyet Thang, the bank provided loans worth a total of VND221.693 trillion (US$9.53 billion) from 2016 to August 31, 2019, helping 1.4 million households cross the poverty line, creating 775,000 jobs, supporting 200,000 students and building 108,000 houses for poor households.

(Source: NDO)