Quynh Luu (Nghe An): Summarizing 20 years of applying for preferential policy credits under Government Decree No.78

DNHN - The People's Committee of Quynh Luu district (Nghe An) recently conducted a conference to examine 20 years of implementing preferential credit policies for impoverished families and other policy beneficiaries by the Government's Decree No. 78/2002/ND-CP.

Mr Nguyen Cong Duong, Deputy Director of the Bank for Social Policies (VBSP) in Nghe An province, and Mr Hoang Danh Lai, Secretary of the District Party Committee and Chairman of the People's Council of Quynh Luu District, attended and directed the above-mentioned Conference. Mr Nguyen Van Thuong, Vice Chairman of the District People's Committee, Head of the Representative Board of the Board of Directors of the Social Policy Bank of Quynh Luu district, and Mr Nguyen Quy Thai, Director of the Social Policy Bank of Quynh Luu district, co-chaired the conference.

The conference received a report on the outcomes of 20 years of operation, as well as certain directions and tasks for the next 20 years in the execution of preferential policy credits for impoverished families and other policy beneficiaries under the Government's Decree No. 78/2002/ND-CP.

Simultaneously, listen to and see 12 delegate presentations, including the Veterans Association aggressively implementing financing operations for disadvantaged families and other policy beneficiaries in the Quynh Luu are entrusting the Quynh Luu District Women's Union's operations; The Chairman of the Commune People's Committee's function in the operation of the VBSP in the neighbourhood; Member of the Board of Representatives of the Board of Directors of the VBSP The Youth Union's involvement in managing policy credit capital for the underprivileged and other policy beneficiaries; The Quynh Luong Commune Farmers' Association effectively conducted entrusted efforts to provide loans to impoverished families and other policy beneficiaries.

Some policy credit implementation experiences of the VBSP's Head of Savings and Loans Group in village 2, Son Hai commune, Quynh Luu district; Results of operations and some lessons learned from managing savings and loan organizations; The responsibility of the village head in the administration of concessional loan capital, as well as some lessons learnt from village capital management; The effectiveness of concessional loans for poor households and other policy beneficiaries in Tan An village, An Hoa commune, Quynh Luu district; the efficiency of the Bank for Social Policy's loan capital; the role of preferential credit in economic development, poverty alleviation, and ensuring social security for the Quynh Luu Farmers' Union...

 At the Conference, the General Director of VBSP presented two groups and six individuals with Certificates of Merit, and the Chairman of the Quynh Luu District People's Committee presented 11 collectives and 26 individuals with Certificates of Merit for outstanding achievements in implementing preferential credit policy for poor households and other policy beneficiaries by the Government's Decree No. 78/2002/ND-CP over the past 20 years. On this occasion, the District Party Committee - People's Council - People's Committee - Fatherland Front Committee of Quynh Luu district handed the banner "20 years of solidarity, innovation, building, and growth" to the Social Policy Bank of Quynh Luu district.

The Social Policy Bank of Quynh Luu district, established on May 10, 2003, has underlined the function and purpose of a significant credit capital management model in a specific book. Simultaneously, the Social Policy Bank of Quynh Luu district has mobilized the synergy of the entire socio-political system to effectively contribute to the implementation of the national target programs on sustainable poverty reduction, new rural construction, and sustainable development socio-economic development in the region.

During the previous two decades, the Social Policy Bank of Quynh Luu district has accomplished the following: The district's loan capital has steadily increased, satisfying the borrowing demands of the impoverished and other policy beneficiaries. The structure of capital growth has switched from central capital to local capital, as shown by the dramatic action of the Party Committee and local authorities from the district to the commune and the large rise in district and commune budgets entrusted via the VBSP. From 02 credit programs, a total outstanding sum of 31,6 billion dongs was transferred initially. The Social Policy Bank of the district of Quynh Luu is now operating fifteen loan programs allocated by the government.

In the previous twenty years, the Social Policy Bank in the district of Quynh Luu has sold a total of VND 2,071 billion, with almost 73,789 impoverished families and other policy beneficiaries getting loans for economic growth, employment creation, and service. Total debt collection income reached 1,362 billion Vietnamese Dong (accounting for 65.8 per cent of loan sales).

It has made a significant contribution to the creation of cash for revolving lending to policy credit initiatives in the region to provide fast responsiveness to clients' borrowing requirements. Reduce demand on central funds drastically.

As of May 31, 2022, the total outstanding loans of credit programs of the Social Policy Bank of Quynh Luu district reached VND 668.1 billion, an increase of VND 636.7 billion, 21.3 times higher than the time of handover, with over 19,2 thousand poor households and other policy beneficiaries receiving loans, the average loan balance of the borrower increased by nearly 12 times compared to when it was first established. The average yearly rate of capital appreciation exceeds 10 per cent.

With the mission of assisting the poor and operating on a non-profit basis, the Social Policy Bank of Quynh Luu district is always a good bridge to help poor, near-poor, and other policy beneficiaries have conditions to access preferential credit capital to develop production, create jobs, improve living standards, and rise out of poverty.

Every year, the Quynh Luu district Social Policy Bank advises the Board of Directors on fundamental measures to increase the efficacy of loans for hunger eradication and poverty reduction. Beneficiaries have aggressively engaged in product development as a result of preferential loan policies, allowing them to rise out of poverty sustainably.

More notably, the Quynh Luu district's Social Strategy Bank has successfully executed the policy of mobilizing savings deposits via the Savings & Loans Group. This strategy not only assists the poor and other policy beneficiaries in becoming acquainted with banking services, developing savings habits, and accumulating sources of debt payback, but it also contributes to loan supplementation. To achieve a breakthrough in poverty reduction, the unit has also produced several advances in investment strategies and loan providing throughout the years.

Simultaneously, combining the use of social policy capital with the use of scientific and technological developments in production so that beneficiaries in the region may change crop and livestock structure in the appropriate direction, and construct viable economic models.

Mr Nguyen Cong Duong, Deputy Director of the Bank for Social Policy of Nghe An Province, spoke at the conference and praised and recognized the results that Quynh Luu district VBSP has achieved over the past 20 years in the implementation of preferential credit policy for poor households and other policy beneficiaries under Government Decree No. 78/2002/ND-CP.

Simultaneously, highlighting several key tasks for the Social Policy Bank of Quynh Luu District to implement in the coming time to further improve its effectiveness as a "midwife" in carrying out the mission of hunger eradication and sustainable poverty reduction, new rural construction, and socio-economic development in the area.

Van Cuong- Hoang Lan